GET BACK TO PROFESSIONAL ETHICS
NEED TO THINK OF PROFESSIONAL ETHICS
The Council of the
Institute of Chartered Accountants of India Vs. Rishi
K. Gupta(Chartered Accountants case No.1 of 1992)
decided on 20-07-2000 by high court of Delhi
under Sec. 21(6) of Chartered Accountants Act,1949.
Facts of the case:
The General Manager (Inspection and Finance), State Bank
of Patiala filed a complaint U/s. 21 of Institute
of Chartered Accountants Act, 1949 to Institute of Chartered Accountants who
were allotted the Audit work of Jhajjar, Rohtak and Hisar branches of the
Complainant – bank for the year ended 1984. They complained that the
said audit firm had submitted bogus bills/receipts in claim of their halting
expenses for the audit of said branches as found on the investigation by the Compalinant – Bank Vigilance
Department. Shri. Rishi K. Gupta, a member
had submitted a written statement in response of this.
The Council of the Institute prima-facie opined that the respondent was
guilty of conduct and has referred the case to the Disciplinary
Committee. The Disciplinary committee after recording the case and
hearings of the submissions made on behalf of the parties, came to conclusion
that the respondent is guilty of misconduct within the meaning of Sec. 22
read with Sec.21 of Institute of Chartered Accountants Act, 1949.
The council after considering the report of disciplinary committee along with
written representations and oral submissions of the respondent came to
conclusion that the respondent is guilty of misconduct under the said
sections and recommended to remove the respondent as a member from Institute
of Chartered Accountants of India for 15 days. The case is referred to
High court of Delhi at New Delhi as required U/s. 21(5) of the Act
with the recommendation of council.
The high court proceded into the matter and
observed that misconduct in this case under subsection (5) of Sec.21 and
found that the respondent is guilty of misconduct under subsection (6), the
high court exercised by virtue of Institute of Chartered Accountants of India
Act, 1949 to remove the respondent from the membership
for a period of 15 days as per the recommendation of the council.
The principal still will be held responsible for the bills submitted by their
staff also. There is need to think back for professional ethics.
Professional ethics to be followed strictly in the audits carried on, to
maintain the standards of Institute of Chartered Accountants of India.
Source: The Chartered Accountant Journal,
Jan 2008
