ICAI Holds CA Guilty of Professional Misconduct for Accepting Audit Without Prior Communication
The Institute of Chartered Accountants of India (ICAI) has taken action against a chartered accountant named Viral Rastogi for not notifying previous auditor before taking up audit.
A complaint was registered by CA Rakesh Rastogi against Viral Rastogi. The complaint refers to the tax audit of M/s Rastogi Computers for the financial year 2018-10, which the respondent accepted without first communicating in writing with the previous auditor. However, the rule says that before accepting an audit, a new auditor must first inform the previous auditor in writing. The Respondent himself admitted that he failed to do so and said it happened due to an oversight. Since there was no written communication or proof that the previous auditor was informed, this failure amounts to professional misconduct under the rules of the Chartered Accountants Act, 1949.
The ICAI Board of Discipline heard the case on July 11, 2025. In a written statement dated June 14, 2022, the respondent accepted the offence committed by him. Since the respondent has clearly and suo moto admitted the allegations imposed on him, the board held the Chartered Accountant (CA) guilty for professional misconduct under Item (8) of Part-I of the First Schedule to the Chartered Accountants Act, 1949.
Citation: CA Parmar Haresh Kumar Jivanlal Vs CA Ketan Ganpatbhai Barevadia (ICAI Board of Discipline); PR/ 316/ 2022/DD / 245/ 2022/ BOD /795/ 2025; 12/12/2025; 2020-21
