05 August 2015
Dear Sir/Ma'am, Plz help me on this...
If a CA is suspended by ICAI under professional misconduct for a tenure of 3yrs w.e.f 2011 and during that period he signs the Financial Statements of a Listed and an unlisted company as an auditor for F.Y. 2011-12, F.Y. 2012-13 and F.Y. 2014-15, what will be the obligations and the duty of the companies whose Financial Statements he has signed?
Does the books of accounts become void ab initio? Are the companies required to get their books reaudited?
Facts of the case:
1. The companies were not aware of his suspension and disqualification for appointment as an auditor.
2. The companies have obtained the auditor's acceptance at the time of his reappointment(as per Co. Act, 1956) and ratification(as per Co. Act, 2013).
Also, please specify if there is any penalty specified under the SEBI guidelines as well (as one of the companies is listed)
05 August 2015
Yup dear both the Company and the Auditor are guilty in the above situation. The books of the company must be re-audited by a qualified member of ICAI.
CAclubindia
