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Professional misconduct by CA

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Rajiv Khurana

27 Points Posted on 29 March 2022

I am the director of a company and the CA, who is also statutory auditor has done the following:

1. Forged my signatures on all the financial documents and uploaded on MCA

2. Leased out his office to the firm that he's auditing ie the company I director of(this was before I became director)

3. Works like an admin for the company (creates invoices, sends RBI circulars, has company email id)

Are all these individually cases of professional misconduct ? Which Schedule and Clause would they fall into?

Replies (6)

Quick Summary

This discussion explores potential professional misconduct by a Chartered Accountant (CA) acting as a statutory auditor. Allegations include forging manual signatures on financial documents, leasing office space to the audited firm (prior to the current director's tenure), and performing administrative tasks for the company, such as creating invoices and managing company emails. The query seeks to identify specific Schedule and Clause violations under professional misconduct rules.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 29 March 2022

Generally digital signature will be used with the consent of client..It's your responsibility to keep your digital signature with you..

Financials have to be filed on time to avoid interest and late fees..They might have done for your sake only..

Else there will be imprisonment for non filing annual accounts on MCA portal

Rajiv Khurana

27 Points Posted on 29 March 2022

1. I am talking about manual signatures on financial documents.

2.i have already resigned so i am no longer liable for filing.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 29 March 2022

The issue has to resolved between the parties..
Outsiders will not be knowing what was happened inside the company

Rajiv Khurana

27 Points Posted on 29 March 2022

Please answer the question asked -- Schedule & Clauses - if you know?

Kindly refrain from giving unwanted advice

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 29 March 2022

Other misconduct has been defined in part IV of the First Schedule and part III of the Second
Schedule. These provisions empower the Council to inquire into any misconduct of a member even
it does not arise out of his professional work. This is considered necessary because a chartered
accountant is expected to maintain the highest standards of integrity even in his personal affairs and
any deviation from these standards, even in his non-professional work, would expose him to
disciplinary action.
4. For example, a member who is found to have forged