As per ET News reports, the Central Vigilance Commission (CVC) has recommended Special CAG Audit of the ICAI’s books of accounts, i.e. the watchdog (ICAI) is likely to be under watch now!! The CVC has noted certain irregularities alleged to be perpetrated during the period 2019 to 2021, which needs close scrutiny along with a system review. Besides, CVC has recommended that operations of ICAI should be more open and transparent.
It may be noted that CVC has moved with this recommendation when the Chartered Accountants Act, 1949 itself is under review of the Parliamentary Standing Committee on Finance, for reforms in the functioning of ICAI, etc. as proposed in December 2021 through the CA, CWA and CS (Amendment) Bill, 2021.
ICAI audits are generally governed by the relevant Rules and Regulations framed under the Chartered Accountants Act, 1949. Accordingly, in normal circumstances, the CAG has nothing to do with the ICAI Audit. However, CVC seems to be of the view that special audit needs to be conducted due to seriousness of the alleged irregularities, despite the fact that ICAI is an autonomous body. Let’s see what decision is taken by the Competent Authorities at MCA/ GOI in this regard.
Source: ET dt. 11/03/2022