CA. Poonam Pathak

• The NFRA fined M/s Venkatesh & Co ₹2 crore for professional misconduct in the 2019-20 Coffee Day Enterprises audit. • Auditors Dasaraty V and Desikan G were banned for 10 and 5 years, respectively. • Dasaraty was also fined ₹10 lakh, and Desikan ₹5 lakh. • The penalties stemmed from a Sebi report revealing a ₹3,535 crore fund diversion from Coffee Day subsidiaries to Mysore Amalgamated Coffee Estate Limited. • The auditors failed to report the fraud and protect public interest. • The order will take effect after 30 days. • In August, NFRA fined KPMG affiliate M/s BSR & Associates LLP ₹10 crore and debarred two auditors for lapses in the 2018-19 Coffee Day audit.

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✅ The current tussle of NFRA and ICAI over the adoption of ISA 600 issued by the International Auditing and Assurance Standards Board (IAASB) will be an interesting one. ✔️ I hope the newspaper reports are correct and this matter will be deliberated in the upcoming ICAI council meeting. ✔️ #India generally converges the international standards instead of adopting. Some carve-outs and carve-ins are always there. ✔️ In india, seperate component auditors are appointed in banking, insurance sector and some other public sector companies. ✔️ Lets wait for the response from ICAI council. I am sure Council will also take the views of partners from Big firms and eminent Chartered Accountants. ✔️ #MCA should mediate as it is the parent body of both #ICAI and #NFRA. ▶️ Views are personal.

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Dismisses challenge to show cause notice premised on audit findings : HC Delhi Magicon Impex Private Limited Ruling : Delhi HC dismisses challenge to show cause notice (SCN) by holding that “SCN may be premised on the findings of the audit report, the same is within the statutory framework.”; Pursuant to an audit, SCN as per section 74 was issued; On receipt of multiple audit memos, the same not only indicated the findings of the auditors, but also called upon the assessee to pay tax as determined, along with the interest and penalties as applicable; Besides, clarifies that “Any irregularities in issuing the audit memos does not impinge the validity of the impugned SCN”; Thus, concluding that SCN cannot be set aside at ‘threshold stage’ disposes of the petition with a direction to Adjudicating Authority to consider the response to SCN, if filed by Assessee #GST #GSTLitigation #GSTUpdates #GSTCompliances #GSTNews

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NFRA and ICAI at Odds Over Plans to Sync Audits with Global Norms! Who is NFRA?   The National Financial Reporting Authority (NFRA) is an independent regulator overseeing the auditing profession and Indian Accounting Standards under the Companies Act 2013. Why are NFRA and ICAI at odds, despite both working for the betterment of auditors?   The tension arises from differing roles and regulatory approaches. The Institute of Chartered Accountants of India supports self-regulation and auditor interests, while NFRA focuses on stricter oversight, emphasizing public interest and audit quality. This divergence creates friction as both strive for auditor improvement. NFRA’s draft norms overhaul the existing Standard on Auditing (SA) 600, affecting listed companies and banks, except state-run ones.  ICAI fears that these norms could concentrate audit work among larger firms, adversely impacting small and medium practitioner firms. ICAI also opposes mandating principal auditors to assess the competence of component auditors, arguing that all auditors share the same education, training, and licensing under ICAI. What is the take of other regulatory bodies? Despite these concerns, the Comptroller & Auditor General of India, Reserve Bank of India (RBI), and Securities and Exchange Board of India (SEBI) support aligning domestic audit standards with global ones. NFRA believes this revamp is essential to prevent corporate fraud by fostering greater accountability among auditors, whose work impacts millions of retail investors. #auditreforms #icai #nfra #auditquality #corporategovernance 

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📢 The 54th GST Council meeting, held on 9th September 2024, introduced significant changes to tax rates and compliance processes aimed at streamlining the GST framework. 🔥 Key highlights are enclosed for ready reference. #GST #GSTupdates #council #meeting #CBIC #compliance #regulatory #indirecttax Anant Bhatia Bhatia & Bhatia Chartered Accountants Rajat Anand CA Riiju Agarwaal

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Join us today for the Panel Discussion on "2nd Accounting Standards Day" starting at 02:30 PM at NDMC Convention Centre, CP, New Delhi. We'll be joined by experts to delve into the below:- 📌 Framework, Formats & Applicability of Accounting Standards 📌 Critical aspects of assets related standards 📌Critical aspects of Liabilities & Expense related standards 📌 Critical aspects of Revenue related standards For further details refer attached flyer. #AccountingStandardsDay #Accounting #NewDelhi

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✅ Breaking News The Institute of Chartered Accountants of India has issued #SQM1 and #SQM2 which are based on ISQMs issued by #IAASB. Here is the link to access the whole announcement : https://lnkd.in/gGkCuRPR ▶️ SQMs will replace the existing SCQ1. ▶️ Please carefully note the effective date mentioned in the respective SQM. ▶️ Whether these SQMs will be notified under Companies Act 2013 as well? ♂️ Please share your thoughts. For more such posts, you may follow CA. Devender Pandey 🇮🇳

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I am thrilled to announce the 3rd edition of "Audit of Financial Statements" by CA Pranav Jain, published by Taxmann is now available This game-changing guide takes you on a comprehensive journey through the entire audit cycle, from appointment to report issuance, with a laser focus on risk-based auditing. Perfect for audit assistants, partners, and practitioners seeking a detailed, easy-to-understand resource to elevate their skills. Dive into: - Real-world scenarios and numerical illustrations - Linkages to legal requirements and illustrative disclosures - Guidance on Audit trail Don't miss out! Get your copy now and transform your audit practice! #AuditRevolution #FinancialStatements #NewBook #AuditExcellence #ProfessionalDevelopment #RiskBasedAuditing

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It’s highly unprofessional that Standard on Auditing under Section 143(10) of the companies act, 2013, still are not notified or recommend by ICAI or NFRA. So long Standard on Auditing are not drafted for the companies act, the standards formulated by ICAI are DEEMED TO HAVE BEEN NOTIFIED.( means still not notified they are under deeming provisions) These standards are not fit for the Companies Act: 1. SA 200, 220, 240, SA 260 include reference to Partnership firm, trust, etc so they are not exclusively for companies act but for other entities as well. 2. Similarly other standard need rewording to be lawfully incorporated in the companies act. Meanwhile, people should challenge these Deeminng Standards on Auditing. Neither NFRA has time nor MCA to remind them. It’s 10 years since the new companies act and NFRA could not notify standard on auding. National Financial Reporting Authority (NFRA) Ministry Of Corporate Affairs Auditing and Assurance Standards Board (AASB)

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📢 ICAI Elections 2024 It’s heartening to see many professional colleagues raising concerns about ICAI elections and governance. Among these concerns is the use of ICAI funds for seminars and conferences, which may indirectly benefit #Council members. In my personal view, proving such a claim is challenging. Some of these programs are genuinely beneficial and align with the Continuing Professional Education (CPE) requirements. While the decision-making process around these programs and fund allocation is a separate debate, there is an opportunity for practicing members to derive indirect benefits if approached strategically. These programs allow CCMs to stay connected with faculties, speakers, moderators, and of course CA influencers, creating a strong professional network. For practicing members, this is a positive development. However, members in the industry might feel overlooked, as their specific needs often remain underrepresented in such initiatives. Rather than expecting too much, members can leverage these programs as effective networking #opportunities. Who knows? You might find yourself as the next speaker or moderator at one of these events! What’s your take on these programs? Share your thoughts in the comments. ♂️ Let’s keep this conversation going! 🔔 Follow CA. Devender Pandey 🇮🇳 for more discussions. CA Ronak Khandelwal (ACA, CCCA, CGST) Sanjay Joshi #ICAI #Governance #Elections2024

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🌟 ICAI's Commitment to Stress Management & Work-Life Balance 🌟 In today's high-pressure work environment, stress management and work-life balance are more important than ever. The Institute of Chartered Accountants of India (ICAI) is committed to the well-being of its members by introducing initiatives to promote mental and physical wellness. Key initiatives include: ✅ Mindfulness & Meditation Programs ✅ Work-Life Balance Workshops ✅ Personalized Counseling Services ✅ Health & Fitness Campaigns ICAI's dedicated group, led by Mrs. Seema Gerotra, is working to implement comprehensive support measures, from wellness webinars to industry collaboration for flexible work models. We remain committed to fostering a resilient, productive, and balanced professional community. #ICAI #StressManagement #WorkLifeBalance #CharteredAccountants #MentalHealth #WellBeing #Motivation #Inspiration #PersonalDevelopment #Success #Goals #Leadership #Management #creativity #HumanResources #recruitment #Innovation #Entrepreneurship #Finance #Investing #Economy #VentureCapital #Markets #Linkedin #personalbranding #HR #employeengagement #talentacquisition #fakihivf

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With the India Union Budget 2024 around the corner, BDO India is pleased to present the expectations from the first Budget of the new Government, in our Pre-Budget campaign: Countdown to the India Union Budget 2024 (a two-volume series). Volume 1: Individual Tax The Union Budget 2024 is slated to be announced on 23 July 2024 and will be the Finance Minister Nirmala Sitharaman’s seventh consecutive Budget. The Government is expected to announce several major economic and social reforms in this year’s Budget. For an extended period, citizens have been demanding incentives and certain relief from taxes. Listed here are a few such expectations which, if considered in this year’s Budget, will have a positive impact on individual taxpayers.

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😱 NFRA calls ICAI’s new audit standards “VOID” All you need to know under a minute: NFRA also plans a fresh review as the battle over quality management standards heats up! 🔸The National Financial Reporting Authority (NFRA) has strongly opposed The Institute of Chartered Accountants of India's (ICAI) recent release of revised Standards of Quality Management (SQMs), labelling them as legally void. 🔸NFRA contends that these standards should have been notified with formal legal backing, aligning with the requirements of auditing standards under Section 143 (10) of the Companies Act. 🔸ICAI, however, argues that SQMs are not audit standards and therefore do not require NFRA’s approval. 🔸In August 2021, the Ministry of Corporate Affairs (MCA) directed ICAI to consult NFRA on any audit-related standards. 🔸While ICAI initially sought time to submit SQM drafts to NFRA, it later issued the standards without doing so. 👉  NFRA, whose board includes representatives from SEBI, CAG, and RBI, has committed to thoroughly reviewing the SQMs in its upcoming November meeting. 👉 The revised standards — SQM 1 and SQM 2 — focus on enhancing risk assessment, adaptable audit frameworks, and engagement quality reviews. 👉 They are scheduled to take effect in April 2024 and April 2026, respectively. 🔴 Without government approval, NFRA warns that practicing Chartered Accountants (CAs) may be unable to follow these standards. 📌 The Implications of unapproved standards may prevent CAs from adopting ICAI’s revisions, potentially widening the regulatory rift. What are your thoughts on the same? Follow CA Archit Agarwal for more such news and insights. #AuditStandards #ICAI #NFRA #Accounting #SQM #CorporateGovernance #CAG #SEBI #RBI #MCA #QualityManagement

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The much awaited explanation for Clause 22-23 of Form 3CD is finally here. Reposting from CA. Pramod Jain’s Tax Audit Series ⬇️ #taxaudit #capramodjain

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🚀 Key Highlights from the 53rd GST Council Meeting: 💰 Extended Timeframe for Input Tax Credit (ITC) under Sec 16(4): -The Council has recommended extending the time limit for availing input tax credit on invoices or debit notes for the financial years 2017-18 to 2020-21. -The new timeframe is deemed to be up to November 30, 2021, -This provides a huge relief and additional flexibility for businesses to claim ITC that might have been delayed. 💰 Interest and Penalty Amnesty Scheme: -The GST Council has recommended waiving interest and penalties on demand notices issued under Section 73 of the CGST Act (for cases not involving fraud, suppression, or willful misstatement). -This applies to the fiscal years 2017-18, 2018-19, and 2019-20. -Businesses can benefit from this scheme if the full tax demanded is paid by March 31, 2025. These recommendations reflect a proactive approach by the GST Council to support businesses in their compliance journey. Staying updated and leveraging these provisions can help your organization optimize tax management and avoid unnecessary liabilities. #GST #TaxCompliance #BusinessFinance #GSTCouncil #ITC #TaxAmnesty #FinancialYear #BusinessUpdate RMRA & Associates Rushabh Gugale Rohit Chhajed

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NFRA vs. ICAI: The Audit Standards Debate The National Financial Reporting Authority (NFRA) and the Institute of Chartered Accountants of India (ICAI) are at odds over proposed changes to audit standard SA 600 ¹ ². What's the Issue? NFRA wants to align SA 600 with international standards, making principal auditors accountable for subsidiary audits. ICAI fears this will concentrate the audit market in a few hands, harming small practitioners ¹ ². Key Concerns: - Concentration of Market: ICAI worries that revising SA 600 will lead to bigger firms dominating the audit market, pushing out smaller firms ¹. - Principal Auditor's Responsibility: NFRA proposes holding principal auditors accountable for subsidiary audits, which ICAI believes is unfair ². - Impact on Small Firms: ICAI claims that 97,000 small CA firms will be affected if NFRA's changes are implemented [2). The Way Forward: ICAI suggests improving processes and implementing additional checks and balances instead of revising SA 600 ². NFRA's goal is to enhance audit quality and reliability, crucial for India's growing economy ¹. https://lnkd.in/gqBgbm5Q Share your thoughts on this controversy. How can NFRA and ICAI find a balance between audit quality and supporting small practitioners? Let's discuss! 💬 #NFRA #ICAI #AuditStandards #SA600 #Accounting #Finance #India

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🔍 The Impact of the ICAI vs. NFRA Dispute Over SA 600 on Audit Quality The ongoing disagreement between the Institute of Chartered Accountants of India (ICAI) and the National Financial Reporting Authority (NFRA) over the interpretation of SA 600 is more than just a regulatory conflict—it has profound implications for the quality of audits across India. While NFRA's push for stricter enforcement may lead to enhanced scrutiny and better documentation, ensuring more robust audits, there's also a risk of audits becoming overly focused on compliance rather than on substance. This could potentially shift auditors' focus from meaningful risk assessment to merely ticking boxes. As professionals, we must navigate this evolving landscape with a commitment to maintaining the highest standards of audit quality, balancing regulatory requirements with the core objective of delivering transparent, reliable financial reporting. Let's stay vigilant, adaptable, and dedicated to our role in upholding the integrity of the financial system. #AuditQuality #ICAI #NFRA #SA600 #RegulatoryCompliance #Auditing #FinancialReporting

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