Principal asking for money from articles!!

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2013 Came up with a situation during audit, fraud is done by the client n did their best to concede it from the article during audit, so the student doing articleship couldn't detect the fraud but it came out eventually later. And now the Principal Chartered Accountant of the article is asking for compensation from the article for the impact on his reputation n goodwill loss. I know this is not legal and article cannot be made responsible for it. What I want to know is that what is the remedy as per practical procedures for the complain against such principal which is a Professional Misconduct as per Regulation 47 of Chartered Accountants Act.

Ashwani Narnoli

Ashwani Narnoli (Expert)
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30 September 2013 Send an application to disciplinary committee of icai.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 September 2013 the principal continues to be responsible for the work attested by him. His reliance on article's work is no excuse.

You may file a complaint with ICAI. However, be sure that you are able to backup your complaint with evidences.

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