Unlawful outward remittances via Hawala using proforma invoices and electronic records proved; documents admitted, directors penalised, penalties redu...
Attachment of equivalent-value properties as proceeds of crime upheld; preventive attachment order and confirmation sustained; no independent ED reinv...
Failure to exercise due diligence in concurrent audit can amount to professional misconduct under Clause 7 of Part I of the Second Schedule, because the expressions "does not exercise due diligence" and "is grossly negligent" are disjunctive alternatives. The Court upheld the finding that a chartered accountant who did not promptly report material banking irregularities committed misconduct, and held that absence of mala fides did not negate liability. It also applied limited judicial review in disciplinary matters, declining to reappraise evidence where no procedural irregularity or natural justice breach was shown. The penalty of removal from membership for six months was modified to a reprimand because of the long delay before final resolution.
Failure to exercise due diligence in concurrent audit can amount to professional misconduct under Clause 7 of Part I of the Second Schedule, because the expressions "does not exercise due diligence" and "is grossly negligent" are disjunctive alternatives. The Court upheld the finding that a chartered accountant who did not promptly report material banking irregularities committed misconduct, and held that absence of mala fides did not negate liability. It also applied limited judicial review in disciplinary matters, declining to reappraise evidence where no procedural irregularity or natural justice breach was shown. The penalty of removal from membership for six months was modified to a reprimand because of the long delay before final resolution.
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