By CA. Sunil Gabhawalla
President
Dear Members,
Immediately after the
completion of the deadline for transfer pricing audits, we now have one more
deadline for uploading of GST Audit Reports by end of December. This would be
the first time that the members would be undertaking the assignments for GST Audit
for their clients. While the statutorily prescribed GST Audit Report primarily
anchors itself around the auditors providing a true and correct view of various
reconciliations listed in the Format, the Technical Guide suggests a much
larger involvement / expectation from the GST Auditors in terms of compliance
with various legal provisions. It is therefore important that the scope of
audit be clearly understood and communicated to the clients at the outset. It
would also be fruitful to have proper engagement letter spelling out this scope
and the inherent limitations of any assurance assignment. Last but not the
least, the fees charged should be commensurate to the work done and the
complexity of the assignment and the risks involved.
While as professionals, we
would gear up for the new responsibility cast upon us, it is also important for
the Government to act fast. Though the formats are prescribed since quite some
time, the portal is still not ready to receive the reports. It would be
appropriate for the Government to expedite this process and also announce an
extension well in advance since the time left for uploading is obviously very
limited.
In a recent judgement, the
Supreme Court held that action can be taken against chartered accountants if their
conduct brings ‘disrepute’ to the profession even if such an action was not
related to professional work. This decision reinforces the extensive regulatory
powers of the Disciplinary Committee of the ICAI in handling various complaints
against the members. At the same time, it acts as a wakeup call for
professionals who are expected to not only ensure that their behavior in the
profession or otherwise is in compliance with laws but also follow accepted
norms of social behaviour.
The year 2018 was a crucial
one for the profession. In the earlier months, the Nirav Modi Scam brought to
forefront the expectations of various stakeholders from the profession. As more
and more financial failures came to limelight, the role of chartered
accountants was widely discussed in the media reports. In the meantime, NFRA as
an independent regulator to oversee the auditing profession was also set up.
While we may have our own lines of defence, it is also time to wake up to the
expectations of the stakeholders.
It is in the above context
that the Council Elections become very important. I am sure that each one of
you will go out to vote for ICAI elections. It may also be useful to make the
best use of the preferential voting mechanism and vote for as many deserving
candidates in orders of preference.
The year 2018 is about to
end, it’s time to take stock of all that was good and relish those memories. It
is also time to take stock of all that did not end up well and analyse the
reasons for the same. If required, it could also be an opportunity to
strategise and find solutions for improvements in the future. Here’s wishing
You All a Merry Christmas and a Happy and Joyous New Year-2018! I urge members
to take a well-deserved break and spend quality time with their near and dear
ones to start afresh with renewed vigour for the New Year.
Yours truly
CA.
Sunil Gabhawalla
President
