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Arjun (A) — O’Lord, I am very much disturbed today.
Shrikrishna (S) —Why? What happened?
A — I really wonder how to protect myself in the profession!
S — I have been telling you what precautions you need to take. Eternal vigilance, dear Arjuna, eternal vigilance!
A — I have lost my sleep!
S — Your motto is Ya Esha Supteshu Jagarti. He who is awake when the world around is asleep.
A — That I know. So long as I am physically awake, I have to be alert, do everything diligently with open eyes. That I understand.
S — Right. Speak the truth; do your duties religiously and never commit default in continuous studies. Not merely for CPE hours, but also for real updation of knowledge.
A — I agree. But now that much is not enough.
S — You need to be disciplined, pro-active and wellorganised! Follow the rules of ethics that we have been discussing all along.
A — Hey Bhagwan, my worry is absolutely different. Nothing to do with what is in our hands! It is beyond all precautions that one can take!
S — What do you mean? If you follow all these tips, then what is the problem?
A — Somebody has forged my CA friend’s signature on the balance sheet; and while uploading the returns, put my friend’s name as auditor!
S — How did he come to know about it?
A — The Banker to whom the client submitted the balance sheet rang him up to confirm whether the CA had really signed it.
S — And the signature tallies?
A — Largely, yes. Very difficult to say that it is not his signature. So skilfully forged!
S — And the seal?
A — There, fortunately, there is some variation. But there was another case reported in the press. Out of 20 companies in the same group, the promoters forged the signatures of a few auditors. Now the promoter is behind the bars.
S — O h! This is dangerous.
A — There is already a disciplinary case going on against another friend of mine where balance sheets with his forged signatures were filed with a nationalised bank – in a branch in a totally remote place. This CA has never ever handled any client’s work from that place!
S — Then who filed the complaint?
A — Obviously, the banker. The borrowers’ accounts became NPAs.
S — I am sure; the borrowers were in collusion with the banker.
A — That is obvious. That branch manager is facing a departmental enquiry for such malpractices.
S — Then what is the problem?
A — See, problems are many. Firstly, all our disciplinary proceedings last for not less than 3 to 4 years! So carry that tension. Then, whatever diligence you may have, such things are beyond your control. So, constant fear. Further, your image with the bank unnecessarily gets spoilt.
S — I know one such case. A CA in Kolhapur received some accounts for submission to the bank. He saw that it was apparently signed by a CA in Mumbai who happened to be his friend. Immediately, he called up his friend and asked whether he had really signed it.
A — Good. That’s how a CA should act. And then what happened? I guess he denied having signed it.
S — You are right! So a lot of trouble was saved. The client destroyed the papers.
A — But I wonder what one should do in such a situation.
S — I feel, one should inform the police authorities about the forgery.
A — But in our country, approaching the police is also risky and not easy! They only harass you.
S — Then one should also inform the Institute; so that if at all any complaint comes, this will prove one’s bonafides.
A — But what will the Institute do?
S — Frankly, at that stage nothing can be done. But at least it is on record.
A — I think one should write to the bank as well.
S — Bankers should be advised to verify such things as a matter of routine, so that malpractices will be exposed before any damage is caused to anyone.
A — Yes; and it is in the interest of the banker as well. But the unfortunate part is that quite often bankers also could be doing it knowingly.
S — The real solution would perhaps be the digitalisation of signatures.
A — True. But it will take a little more time for that culture to develop fully in our country.
S — But then, you people do not even handle the digital signatures carefully! DSCs are lying anywhere in your offices, indiscreetly.
A — I know. There are situations where CAs have misplaced clients’ DSCs. Very embarrassing!
S — You must study the provisions of the I.T.
Act – Not merely Income Tax; but Information Technology. DSCs should be preserved with utmost care and security.
Otherwise, even God will find it difficult to save you! And there should be very careful documentation.
A — Yes, Lord! I fully agree. Prevention is better than cure. We simply can’t afford to handle such things loosely.
S — Remember, today if the manual signature is forged, perhaps the forensic studies will help you. But if it is misuse of digital signature, then don’t even approach ME for help.
A — Sure, Lord! I will keep it in mind always. Om shanti !!!!!
Note
This dialogue is based on the general principles of diligence in unforeseen situations. _
