Professional Conduct in Auditing: Exploring the Jurisdiction and Compliance in Auditor (Chartered Accountants) Regulation

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..... II. Nature of Allegations and Charges The core allegations leveled by NFRA encompass various failures in professional conduct. These include: * Non-Compliance with Statutory Provisions: The appellants were accused of failing to ensure compliance with Sections 139 and 140 of the Companies Act, 2013. These sections are crucial in ensuring the legitimacy and efficacy of financial auditing. * Failure in Disclosure: There was an alleged failure to disclose essential facts known to the appellants in their capacity as professionals. * Negligence in Professional Duties: Accusations of gross negligence and a lack of due diligence were made, questioning the thoroughness and accuracy of the auditing process. * Insufficient Informat....

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....ce: The appellants provided detailed submissions on their adherence to various SAs, challenging the allegations of non-compliance. * Financial and Professional Ramifications: Emphasizing the impact of the orders on their professional careers and reputations, the appellants requested an interim stay and highlighted the disproportionate nature of the penalties imposed. IV. NFRA's Counterarguments * Validity of Averments: NFRA refuted the appellants' claims, labeling them as misleading and mischievous, while underscoring the legislative objectives behind the establishment of NFRA and the regulation of auditors. * Jurisdictional Authority: NFRA defended its jurisdictional reach and the retrospective applicability of the Com....