After PNB fraud sparks outrage, ICAI sends this tough message to CAs

Amid auditors' role coming under the lens in the Rs 12,700 crore fraud at Punjab National Bank, ICAI President Naveen N D Gupta has flagged concerns about perception gap for chartered accountants even as he emphasised the need to "rekindle the credibility as core to our existence and growth". Gupta, who took over the reins of the ICAI last month, noted that chartered accountant profession owes its sustainability to strong regimen of ethics.

Against the backdrop of various corporate frauds, including in the banking sector, there are concerns about lapses on part of auditors in detecting the alleged misdoings. "With spurt in economy and increased reliance on the role of profession, there started the issue of expectation gap or should I say perception gap. We need to rekindle the credibility as core to our existence and growth," Gupta said in a message to the ICAI members.

As a multi-agency probe is going on in the fraud at Punjab National Bank, the alleged lapses of auditors have also come into focus. Noting that time of disruptions is a time for introspection and taking corrective actions, if so needed, Gupta said the exercise of bank branch audit assumes a paramount importance for the banking industry and banking regulators, among others.

TRENDING NOW

India's power consumption grows nearly 9% to 1,099.90 billion units in April-November

COVID-19 Update: India records 148 new coronavirus cases, infection tally stands at 4.50 crore

Annual GDP of Modi government 5.4%, but highlighting quarterly growth:Congress

Delhi Weather Update: National Capital records minimum temperature at 8.5°C

Google's experimental AI-powered notetaking app now uses Gemini Pro

Tata Group submits application to set up semiconductor processing plant in Assam: CM Sarma

Delhi records minimum temp of 8.5 deg C, AQI 'very poor'

Government approves 100% packaging of food grains in jute bags

Microsoft, OpenAI tie-up comes under antitrust scrutiny

India vs South Africa 2023-24: T20, ODI, Test Matches Full Schedule, Match Dates, Time in IST, Venues, Squad, Free Live Streaming Details

China's consumer prices fall fastest in 3 years, factory-gate deflation deepens

BSE, Wipro, Blue Dart, Persistent Systems, Spandana Sphoorty: Stocks to watch on Monday

Australia to triple fees on foreign purchasers of existing homes

Infinix Smart 8HD smartphone launched at just Rs 5,669 - Check features and specs

NT Awards 2023: Zee Business shines in five categories

"... Once in a while there are occasions when due to some isolated cases concerns have been raised about the contribution of the profession and services rendered by members like in the PNB matter," he said.
The Institute of Chartered Accountants of India (ICAI) has set up a high-powered group to look into the PNB case.

"The officers of PNB were called by ICAI to appear and produce copy of all related documents in the said frauds. General Manager, Western Zone, PNB appeared and made his statement in Mumbai," the institute had said last week.