This order has been taken on account of the downfall on the part of the audit firm to abide by a specific direction issued by RBI with respect to its statutory audit of a Systemically Important NBFC
The Central Bank on October 12 prohibited CA firm Haribhakti & Co from undertaking any type of audit projects in any of the entities regulated by Central Bank for 2 years with fallout from April 1, 2022.
This order has been taken on account of the downfall on the part of the audit firm to abide by a specific direction issued by RBI with respect to its statutory audit of a Systemically Important NBFC, the RBI said.
“The Central in exercise of the powers vested under section 45MAA of the Reserve Bank of India Act, 1934, has, by an order dated September 23, 2021, debarred M/s Haribhakti & Co. LLP, Chartered Accountants (ICAI Firm Registration No. 103523W / W100048), from undertaking any type of audit assignment/s in any of the entities regulated by RBI for a period of two years with effect from April 1, 2022,” the RBI said in a release.
This regulation will not affect audit assignment/s of M/s Haribhakti & Co. LLP in RBI standardized entities for the FY 2021-22, the release added. This is the first disqualification done under this provision of RBI Act.
Under this, if the charges are proved the central bank can discard or deprive the auditor from exercising the duties as auditor of any of the Bank regulated entities for a maximum period of 3 years, at a time.
Source: Business World
