ICAI has removed a Chartered Accountant’s name from its register for one year over alleged audit lapses involving Varun Industries and failure to report financial irregularities linked to ₹1,150 crore.
The Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) has ordered the removal of a Chartered Accountant’s name from the Register of Members for one year in connection with audit-related lapses concerning Varun Industries Limited for FY 2011-12.
The disciplinary matter followed allegations that the statutory auditor failed to appropriately identify and report material misstatements in the company’s annual report, in relation to the alleged siphoning of approximately ₹1,150 crore. The proceedings also concerned the auditor’s examination of the company’s going-concern assessment and whether sufficient appropriate audit evidence was obtained to evaluate potential material uncertainty over the company’s ability to continue its operations.