The Institute of Chartered Accountants of India (ICAI) has imposed a “record” number of disciplinary actions against its members in the current financial year.

A total of 241 chartered accountants faced penalties, marking a significant increase from the 119 disciplinary actions taken in the previous year, The Economic Times reported.

The actions taken included penalties including cancellation of membership for up to five years.

Commenting on the penalties, ICAI president Charanjot Singh Nanda emphasised the institute’s commitment to maintaining high ethical standards within the profession and ensuring a quick disciplinary process.

In response to queries about the institute’s jurisdiction over firms, Nanda clarified that the ICAI is awaiting the Ministry of Corporate Affairs to enforce amended legal provisions.

He added that currently, the ICAI’s authority is limited to individual members, while the National Financial Reporting Authority has the capacity to take action against firms as a whole.

Nanda addressed concerns regarding the scope of work for chartered accountants, particularly in light of the new Income Tax Bill.

Previously, Nanda opposed the inclusion of other professionals such as company secretaries and cost accountants in the definition of ‘accountant’ under the new legislation.

He reinforced the notion that auditing should be the exclusive purview of CAs, stating, “Audit work can be done only by chartered accountants, the chartered accountants in practice… we do audit. Audit is a serious business which can be done only by people doing so.”

The issue of professional boundaries is said to be further examined by a committee comprising representatives from the ICAI, the Institute of Company Secretaries of India, and the Institute of Cost Accountants of India.

Nanda, who has recently taken office as the president of the ICAI, firmly believes that tax audits and other audit-related functions should remain exclusive to chartered accountants due to their specialised training and expertise.