https://www.taxtmi.com/caselaws?id=311118 SEBI disposed of proceedings against statutory auditors accused of professional misconduct in preparing financial statements showing inflated sales and non-existent transactions. While SEBI found gross negligence and dereliction of duty by the auditors, insufficient evidence existed to prove fraudulent connivance with company management. The auditors had issued qualified reports highlighting irregularities, which supported their defense. SEBI granted benefit of doubt regarding fraud allegations but issued cautionary advice and directed forwarding the order to ICAI and NFRA for appropriate professional disciplinary action. en-us Mon, 19 Jun 2023 00:00:00 +0530 Sat, 09 Dec 2023 08:56:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=311118 SEBI disposed of proceedings against statutory auditors accused of professional misconduct in preparing financial statements showing inflated sales and non-existent transactions. While SEBI found gross negligence and dereliction of duty by the auditors, insufficient evidence existed to prove fraudulent connivance with company management. The auditors had issued qualified reports highlighting irregularities, which supported their defense. SEBI granted benefit of doubt regarding fraud allegations but issued cautionary advice and directed forwarding the order to ICAI and NFRA for appropriate professional disciplinary action. Case-Laws SEBI Mon, 19 Jun 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=311118