By Shri Sunil Talati             
Central Council Member    

No Council Meeting was there in the month of April. However, more than 3 meetings of Disciplinary Committee at various places in India. The names of Complainant, Respondent and even City being matter of confidential aspect of the Council, without mentioning them it is felt that Hon’ble Members’ kind attention be drawn on the fact that many complaints are being received by the Institute which relates to complaint filed by one Chartered Accountant on another professional Chartered Accountant brother with regard to non-communication of the appointment of another Chartered Accountant in place of retiring Auditor and also of not ascertaining the compliance of provisions of Sec. 225 of the Companies Act. It is unfortunate that Hon’ble members have to undergo all these disciplinary procedures, allegations and charges by one party defence and producing evidences by other party and detailed investigative inquiry by the members of Disciplinary Committee so as to make honest effort to see that truth is brought on record and if Respondent found guilty, report the Council accordingly. Hon’ble members are therefore requested that whether it is a small audit of Trust or Proprietory firm or that of a private or private limited company having small audit fee or big audit fee, kindly ensure that before accepting the audit which was hitherto done by another Auditor, communication is to be sent by Registered A.D. letter (not simply Registered or Under Posting Certificate etc.). Not only that, as clarified in Code of Ethics a Chartered Accountant after sending such communication must wait for a reasonable period of about 10 to 15 days and then only should accept and commence the audit. Accepting and signing the Audit Report immediately after sending No Objection letter also invite disciplinary actions. This is just to bring to the kind attention of Hon’ble members so that at least from our Region, members shall see that even unintentionally such errors are not committed and no unhealthy atmosphere is created between the members interse.

Professional Development Committee of the Institute is also very active and have started paying pro active role. A Task Force is appointed under my Chairmanship and Shri N.P. Sarda as Convenor. This Task Force will keep contacts with various Ministers and Secretaries, so as to increase Audit fees, explore new avenues of audit etc.

The undersigned also met concerned Minister and Secretariat as well as Registrar of Co-operative Societies, so as to increase the audit fees in co-operative societies. Mr. R.M. Joshi, Registrar of Co-operative Societies at Gandhinagar has been quite co-operative. The matter was discussed also with concerned Chief Secretary and the Minister, who on principle has agreed to increase the Audit fees of co-operative societies. Members must be knowing that maximum fees of Audit of Co-operative Society is fixed at Rs.10,000/- which has been agreed on principle to raise upto Rs. 1,00,000/- to Rs.1,50,000/-. Efforts are also made to see that fees are increased for the audit conducted for the year 2001-2002. Hon’ble members are therefore requested to kindly accept the audit of Co-operative Societies as this year Hon’ble Registrar of Co-operative Socieites has allotted almost 200 audits of Co-operative Banks out of 308. Further it has been assured that next year audit of all Co-operative Banks will be allotted to Chartered Accountants, who are in panel with Registrar of Co-operative Societies. Members in practice, who have not registered themselves in the panel of Co-operative Societies are requested to kindly register at Gandhinagar. I must acknowledge the sincere efforts and devoted services continuously made available by the Past Central Council Member Shri R.S. Patel and Past Regional Council Members Shri Dilip M. Shah in this matter.

Members are requested to see that their application forms for Bank Audit Empanelment is sent regularly in time with necessary details. Same way they are requested to see that Application of Empanelment of Audit by C&AG, Central Co-operative Society Audit Panel, Insurance Audit Panel and others are filled in time to time with full details.

Out of 39 Chartered Accountants, who appeared for the ISA Examination 14 Chartered Accountants have passed in the first ever ISA Test conducted in Ahmedabad. My heartiest Congratulations to them as they have put all their hard, sincere and devoted efforts for appearing in ISA Exam. Those who could not pass the first test should not be disheartened, they will clear in the next exam and my Best Wishes to them.

I have formed Local Committees so as to send the views to ICAI on:

1. Draft Accounting Standards

2. Draft Guidance Note

3. Draft Statement on auditing practice

4. Suggestions on pre-budget and post budget Memorandum

5. Professional Development assignment work

6. Revision in Chartered Accountants Act and Chartered Accountants Regulations

7. Updating the Syllabus of B.Com, and M.Com of our University in tune with new PE-I and PE-II Examinations,

8. Preparing Note on draft of audit of Pharmaceutical Industry, etc
   

I earnestly request the members, who have experienced and expertise to contribute in any one or more of the aforesaid areas. Kindly contact me or the Branch, so that the Institute can be benefited by such yeoman services of such Hon’ble members of Ahmedabad.

April 2002

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