The Hindu Business Line : Schedule to specify acts of professional misconduct for CAs

THE Centre, it appears, does not want to leave anything to chance. Besides overhauling the disciplinary mechanism for chartered accountants, the Centre plans to empower itself to specify by rules an act or omission which may be determined as professional misconduct.

This would be in addition to the list of acts that are to be mentioned and deemed as professional misconduct in the new schedule that would form part of the Chartered Accountants Act, 1949 after the Chartered Accountants (Amendment) Bill, 2003 is passed by Parliament.

As part of the overhauling of the disciplinary process, the Centre plans to replace the existing two schedules in the Chartered Accountant Act with a single schedule that specifies the acts of a chartered accountant that would be deemed as professional misconduct. The high courts would have no role in the new disciplinary process that is to be instituted.

The Centre is overhauling the disciplinary process after the Joint Parliamentary Committee that probed the stock market scam of March 2001 commented on the slow disciplinary procedure for the erring members of the institute.

The Naresh Chandra Committee on Corporate Audit and Governance, which examined auditor-company relationship and the existing disciplinary mechanism for auditors, had made recommendations to improve the disciplinary process.

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Schedule to specify acts of professional misconduct for CAs