Wrong disclosures in balance sheet

This query is : Resolved

sannagovindappa.G (Querist)
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29 October 2011 Dear Members

one of our CA is giving audited balance sheet without proper auditing, he is finalized. now he is given balance sheet but its not correct like fixed assets balance, Sales details,even without bank reconciliation.

since he is doing the same from 1999-2000 to till including current year. for his mistake client is taken notice from sales tax Dept and Income Tax dept for assessment every year. from his mistake client loss around 25 lakhs in this case is there any law we can file a suit against him. if yes give me under which we can suit him

CA Pabbaraju Laxmi Narasimha

CA Pabbaraju Laxmi Narasimha (Expert)
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29 October 2011 A chartered accountant is expected to perform the audit with due care and professional competence.
He should not be grossly negligent in conducting the audit.

In the given situation by you, the auditor seems to be GROSSLY negligent.

The chartered accountant said by you may attract the professional misconduct under clause 7 of Part 1 of Second schedule.

This is according to the facts given by you.

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