NFRA Imposes Rs 2 Crore Fine on Auditor, Debars CAs for Lapses in Coffee Day Enterprises Audit

The National Financial Reporting Authority (NFRA) imposed a Rs. 2 crore fine on the statutory auditor and Rs. 15 lakh on two chartered accountants for professional misconduct during the audit of Coffee Day Enterprises Limited (CDEL) for FY 2019-20. The auditors failed to perform mandatory procedures and neglected their duty by not addressing the risk of material misstatement and fraud. The case involved the diversion of Rs. 3,535 crore from CDEL subsidiaries to Mysore Amalgamated Coffee Estate Limited (MACEL). NFRA’s order underscores the importance of auditors adhering to their statutory obligations to protect the public interest.