Under Section 132(4)(b) of the Companies Act, the NFRA is authorized to request books of accounts from auditors under investigation. On such request, the auditors must serve the relevant documents within the stipulated time. Failure to communicate promptly or any delay will be regarded as a breach of NFRA regulations, and the auditor may be found culpable of professional misconduct.
In the recent order issued by NFRA, it is observed that despite sufficient time and opportunity given to the auditor, he did not submit the audit file and SQC 1 policy of the firm which forced NFRA to conclude that either the auditor had no such documents with him or is unwilling to cooperate with NFRA in the discharge of its statutory responsibility. Thereafter, the NFRA issued an order based on materials available on the record.
Persistent non-cooperation shown by the Chartered Accountant during the investigation process agitated the NFRA to take stringent action against Chartered Accountant.
Click Here To Read The Full Story
The post Persistent Non-cooperation During NFRA Investigation Results in 10-Year Debarment of CA appeared first on Taxmann Blog.
