Big setback to Haribhakti & Co LLP! RBI bars chartered accounting firm from taking audit exercises in its regulated entities for 2 years

In a major setback to Haribhakti & Co LLP, the Reserve Bank of India (RBI) has barred the chartered accounting firm from undertaking audit exercises for the period of two years with effect from April 1, 2022. The action from the central bank comes in the view of failure on the part of the audit firm to comply with a specific direction issued by the Reserve Bank.  

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"The Reserve Bank of India (RBI) in the exercise of the powers vested under section 45MAA of the Reserve Bank of India Act, 1934, has, by an order dated September 23, 2021, debarred M/s Haribhakti & Co. LLP, Chartered Accountants (ICAI Firm Registration No. 103523W / W100048), from undertaking any type of audit assignment/s in any of the entities regulated by RBI for a period of two years with effect from April 1, 2022. This action has been taken on account of the failure on the part of the audit firm to comply with a specific direction issued by RBI with respect to its statutory audit of a Systemically Important Non-Banking Financial Company, " read a media release from the Reserve Bank of India.  

The central bank, however, clarified that the order will not affect audit assignment Haribhakti & Co. LLP in RBI regulated entities for this financial year. "This will not impact audit assignment/s of M/s Haribhakti & Co. LLP in RBI regulated entities for the financial year 2021-22," said the release.