The National Financial Reporting Authority, following the Show Cause Notice, provided to Chartered Accountant Gulshan Jagdish Jham seeking him to show cause for the action must not be acted against him for the professional misconduct for his performance since the legal auditor of Prabhu Steel Industries Limited (PSIL), a listed company for the fiscal year 2019-2020, revealed that the CA was guilty of the charges.
Rs 1,00,000 was levied on the Chartered Accountant and his name was debarred from getting appointed as an auditor or the internal auditor or via performing any audit.
The opinion of the independent auditor’s report, the assurance of the financial statements with the accounting principles laid in India.
Lack of compliance with the Indian Accounting Standards (Ind AS) was discovered to have gone unreported in the audit which has been performed by the CA. Chartered Accountant has disregarded Standard on Auditing (SA) 210, 250, and 700, and was liable to follow with that.
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The violations of SA 200 and SA 210 for the acceptability of relevant financial reporting framework and compliance with that, SA 250 for compliance within the statutory and SA 700 for giving his opinion on the correct view of financial statements, and lastly the incorrect statements of the CA performed the audit by him as per SAs were seen to be an offence of the professional values.
CA Gulshan Jagdish Jhan, as per the monetary penalty of Rs 1 Lakh and was debarred for 1 year from embarking audits by the NFRA under Section 132(4) of the Companies Act, 2013.
