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Thursday, March 2, 2023

Watching the watchdog: Taking note of irregularities, CVC recommends special CAG audit of ICAI’s books :-ET

             


                                                                    Synopsis

The Central Vigilance Commission feels the deep-seated irregularities alleged in the period between 2019 and 2021 need closer scrutiny and systemic changes. ICAI feels audits are governed by the Act and CAG has no role; competent authority to take a call after hearing on Friday.


The Central Vigilance Commission (CVC) has recommended a special audit into the accounts of the Institute of Chartered Accountants of India (ICAI) by the national auditor, the Comptroller and Auditor General (CAG).

It has also asked for greater disclosures and transparency in the functioning of the institute. The recommendations come at a time when the parliamentary standing committee on finance is examining crucial amendments to the ICAI Act, 1949.

If accepted and implemented, these recommendations will go a long way in ushering in the much-needed reforms in the functioning of the ICAI, which is supposed to be the watchdog of the audit profession.

The recommendations came after CVC was asked to examine complaints of alleged financial irregularities in the institute in the years 2019-20 and 2020-21 during the tenures of former presidents Prafulla Chhajed and Atul Gupta, respectively.



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