Karnataka government blacklists 60 CAs firms for cooperative audits
Karnataka’s Co-operation Minister S T Somashekar said in this statement, The state government has blacklisted 60 Chartered Accountants (CAs) who were under scanner for irregularities,
The CA’s which have been banned by the state government will not allowed to practice henceforth, there are 402 vacancies for CA in various co-operative society which have not been filed in amid of covid pandemic so government Is taking help of private CA’s to complete the work of these societies, however over 1700 CA’s have been enrolled for this purpose, Minister said.
The Minister added, wherever there is complaint in Audit of these co-operative societies they are conducting re-audit for same, and taking action against accountants.
Earlier there was no restrictions putted by the government on taking up number of co-operative societies audit by the CA’s which leads to few CA’s Colluded to the government staff and taking up as many society Audit, now government is planning to impose restrictions of number audit of co-operative society by each individual Chartered Account, the restrictions can be imposed by the state government w.e.f April 22.
The government is planning to take-up this matter before Legislature for approval during next session to streamline the work of CAs.
The work of CA’s is already regulated by THE CHARTERED ACCOUNTANTS ACT, 1949 and THE CHARTERED ACCOUNTANTS REGULATIONS, 1988. The ICAI not only regulate professional engagement of CA’s in the country but also regulate other misconduct of the Chartered Accounts.