Latest News | NFRA Slaps Rs 50 Lakh Fine on Audit Firm, Imposes 2-year Ban
Get latest articles and stories on Latest News at LatestLY. The National Financial Reporting Authority (NFRA) on Friday imposed a penalty of Rs 50 lakh on PCN & Associates and Rs 30 lakh on an auditor for auditing lapses.
New Delhi, Apr 26 (PTI) The National Financial Reporting Authority (NFRA) on Friday imposed a penalty of Rs 50 lakh on PCN & Associates and Rs 30 lakh on an auditor for auditing lapses.
Besides, the audit firm and the individual -- engagement partner Gopala Krishna Kandula -- have been barred from taking up audit works for two years and ten years, respectively.
The order has been passed against them for lapses in relation to the audit of Brightcom Group for the period 2019-20 to 2021-22.
A fine of Rs 50 lakh has been imposed on PCN & Associates and Rs 30 lakh on the engagement partner Kandula, the NFRA said in a 12-page order.
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They have been barred for varying periods from "being appointed as an auditor or internal auditor or from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate", it said.
The watchdog said the firm and engagement partner have been found guilty of professional misconduct in their failure to comply with provisions of the Companies Act, 2013 and Code of Ethics.
The matter was taken up by the NFRA following information received from markets regulator Sebi about financial irregularities by Brightcom Group and its auditors.
"The non-cooperation displayed by the auditors is troubling since it hinders the investigation of any possible professional misconduct on their side.
"This substantially impedes NFRA's ability to fulfil its statutory duty of providing effective oversight. If such auditors are allowed to do statutory audits of any company or body corporate, the public interest is probably going to be jeopardised," the order said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)