ICAI favours existing audit mechanism

ICAI favours existing audit mechanism

Context:

• The Institute of Charted Accountants of India (ICAI) supports efforts to strengthen its existing disciplinary and oversight mechanism through amendments to the CA Act.

Why is it in news?

• This comes in the backdrop of allegations about the role of Chartered Accountants (CAs) in the Punjab National Bank (PNB) scam and Finance Minister Arun Jaitley pointing fingers at auditors and regulators for failing to detect such frauds.
• On strengthening its disciplinary and oversight mechanism, the ICAI said it had already submitted its comments for the recommendation of the Central Government-appointed High Level Committee (HLC), which had also already drafted amendments to the CA Act.
• However, ICAI has indirectly opposed the setting up of a super regulator National Financial Reporting Authority (NFRA) to regulate the CA profession.

There’s time to draw conclusion:

• The CA regulator said till the time disciplinary inquiry was concluded in the PNB matter and the role of all those who acted in fiduciary responsibility was established, it would not be wise to draw any conclusion against the profession.
• The ICAI remained committed to ensure accelerated inquiry and conclusion of the disciplinary proceedings in the PNB matter.