Incorrect reporting in Clause No. 21 of CARO: ICAI’s disciplinary committee ordered a penalty of Rs.100,000/- on member
ICAI’s disciplinary committee ordered a member guilty for gross negligence and penalty of Rs.100,000 imposed.
The only reason for the charge is incorrect factual reporting in one of the 21 clauses of CARO 2020 in financial statements of a company for FY 2015-16.
The member pleaded not guilty since the incorrect reporting did not result in material misstatements of financial statement or affected the true and fair view of the financial position or financial performance of the company.
We as auditors need to be extremely careful in performing our duties and reporting responsibilities.
It seems that in the times to come, there are going to be more challenges in audit profession in India than the opportunities.
The copy of the order is as under:
