The Reserve Bank of India (RBI) has debarred chartered accountants Haribhakti and Co LLP from undertaking any type of audit assignments in any of the entities regulated by it for a period of two years with effect from April 1, 2022.
The action has been taken on account of the failure on the part of the audit firm to comply with a specific direction issued by the RBI with respect to its statutory audit of a Systemically Important Non-Banking Financial Company.
The RBI decision will, however, not impact audit assignments of the audit firm in RBI regulated entities for the financial year 2021-22.
The action against statutory auditors of the NBFC has been taken under section 45MAA of The RBI Act, 1934, empowers the central bank to take action against auditors of NBFCs.
