Case Law Analysis
|National Company Law Appellate Tribunal
SQC 1 & NFRA Orders | Audit Firms and Engagement Partners Jointly Liable for Professional Misconduct: NCLAT Upholds Penalties
NCLAT affirmed NFRA's imposition of ₹3L and ₹5L penalties on a chartered accountant and his firm for professional misconduct in the Vikas WSP Limited audit. The ruling reinforces that audit firms and engagement partners share joint liability under Standards on Quality Control (SQC 1), setting a precedent for stricter accountability in statutory audits.