Agitated CAs, auditors to stop working

KATHMANDU, Jan 17: Auditors and chartered accountants (CAs) have unveiled a protest program against the recent arrest and prosecution of two CAs on charges of financial fraud connected with their auditing of financial reports of Everest Insurance Ltd (EIL).

Organizing a press conference in capital on Thursday, the Association of Chartered Accountants of Nepal (ACAN) and the Auditors´ Association of Nepal (AUDAN) said they would halt auditing of the accounts of insurance companies first, then banks and then other companies starting Friday until their four-point demand is met.

The Central Investigation Bureau (CIB) arrested CA duo Gopal Kumar Agrawal and Jagadish Agrawal on December 25.  Jagadish Agrawal was eventually released on bail by the district court, while Gopal Kumar Agrawal is still in jail. ACAN and AUDAN have demanded the immediate release of Gopal Kumar Agrawal and withdrawal of the ´false´ charges filed against the two.

Accusing that CIB had overstepped into the jurisdiction of the Institute of Chartered Accountants of Nepal (ICAN), the regulatory entity for the chartered accountants, ACAN and AUDAN said they cannot continue their professional work under the ´undue´ pressure of CIB.

AUDAN President Mohan Raj Regmi also said they were also saddened by the ´indifference´ of the ICAN when their profession was under risk due to ´the attack by the other bodies´. “Since our profession is being attacked by the state, we have ourselves come to save it.”

The accountants will stop auditing the financial reports of all insurance companies from Friday, banking and financial institutions from January 29 and all companies listed in the Nepal Stock Exchange (Nepse) from February 27. Likewise, they said they would stop auditing of government offices from March 1.

As part of their protest programs, the chartered accountants and auditors will return their Certificate of Practice (CoP) to the ICAN on February 2.

“ICAN is there to investigate auditors and chartered accountants. Only this body can take action against them if they are suspected of misdeeds. If any criminal offense is found, then this body will forward the case to the police,” ACAP president Bharat Rijal said, adding that the arrest and prosecution by CIB was totally unwarranted and condemnable.

(Source: REPUBLICA)