Recent findings reveal that more than 40% of investigations initiated by The Institute of Chartered Accountants of India (ICAI) against chartered accountants (CAs) or their firms lead to disciplinary actions, reported Financial Express.
However, the number of cases scrutinised by the institute remains minimal compared to the more than 400,000 CAs registered in the country.
Despite amendments to the CA Act in 2022 aimed at enhancing accountability and ensuring timely justice, these new disciplinary provisions have yet to be implemented.
Currently, 368 cases of professional misconduct are pending before the ICAI’s disciplinary bodies.
Since the disciplinary mechanism’s inception in 2007, 2,650 cases have been referred for enquiry, with hearings concluded in 2,284 cases.
The ICAI has penalised 1,080 CAs in the past 17 years, indicating a culpability rate of 40.7%.
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By GlobalDataThe institute’s efficiency in case disposal varies annually.
In FY23, 500 cases were considered, but only 152 concluded.
This financial year, 200 out of 257 reported cases have been addressed as of 31 August.
ICAI has three arms for disciplinary matters: the director (discipline) investigates complaints, the board of discipline handles cases under the first schedule of the CA Act, 1949, and the disciplinary committee deals with violations under the second or both schedules.
The maximum penalty includes a lifetime membership suspension and a fine of Rs500,000 ($5,947).
Speaking to the business publication, ICAI president Ranjeet Kumar Agarwal said: “ICAI not only performs its statutory duties as a regulator of the profession of chartered accountancy in India by formulating accounting standards in keeping pace with changing economic scenario but also has enforced the ethical values as enshrined in code of ethics.
“It has proactively taken action against its erring members, found guilty of professional misconduct through its well-defined robust disciplinary mechanism as provided under the CA Act, 1949 and the rules framed thereunder.”
In September 2024, ICAI established a group dedicated to stress management and counselling services, focusing on developing peer support networks and collaborating with health institutions for stress management programmes.
