Mumbai, Dec 7: The National Financial Reporting Authority (NFRA) has taken strict action against two statutory auditors linked to erstwhile Dewan Housing Finance Corporation Ltd (DHFL) and penalized them for professional misconduct during their audit work.
Chaturvedi and Shah’s partner Jignesh Mehta, who worked as engagement partners for the statutory audit of DHFL in 2017-18, have been banned for ten years and fined Rs 5 lakh. NFRA found him to be in breach of professional standards, particularly noting his failure to complete a branch audit of the company’s financial statements for the relevant period.
CA Amit Vinay Chaturvedi, another partner of Chaturvedi & Shah LLP, who served as the engagement quality control review partner for all statutory audits of DHFL in 2017-18, has been appointed as the auditor, acting as internal auditor or undertaking any audit work. Has been stopped from doing so. five years. He has also been fined Rs 5 lakh for failing to meet the required auditing standards.
NFRA, as a statutory body with monitoring and enforcement powers, conducted an audit quality review in response to media reports alleging misuse of public funds worth Rs 31,000 crore by DHFL directors. NFRA’s move is part of a series of orders issued against auditors linked to DHFL who performed audit work for the company.
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