https://www.taxtmi.com/caselaws?id=338765 A statutory auditor may be found guilty of professional misconduct where book-entry transactions, inflated stock, receivables and other irregularities indicate that the accounts do not reflect the true financial position, yet the auditor fails to exercise professional scepticism or inquire into suspicious entries. The text notes that the relevant auditing standards required fraud-risk assessment, documentation of significant matters and proper working papers, but the respondent did not produce audit records or satisfactorily explain the scrutiny of stock and debtor statements supporting working-capital facilities. On that basis, misconduct under the Chartered Accountants Act, 1949 was upheld and removal from the register for five years was sustained. en-us Fri, 03 Feb 2017 00:00:00 +0530 Sat, 11 Feb 2017 10:38:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338765 A statutory auditor may be found guilty of professional misconduct where book-entry transactions, inflated stock, receivables and other irregularities indicate that the accounts do not reflect the true financial position, yet the auditor fails to exercise professional scepticism or inquire into suspicious entries. The text notes that the relevant auditing standards required fraud-risk assessment, documentation of significant matters and proper working papers, but the respondent did not produce audit records or satisfactorily explain the scrutiny of stock and debtor statements supporting working-capital facilities. On that basis, misconduct under the Chartered Accountants Act, 1949 was upheld and removal from the register for five years was sustained. Case-Laws Indian Laws Fri, 03 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338765