Professional Misconduct in Audit of Cafe Coffee Day: NFRA slaps Penalty on Statutory Auditor and Chartered Accountant

The National Financial Reporting Authority (NFRA) has imposed a penalty of ?2 crore on the statutory auditor and ?15 lakh on two chartered accountants for professional misconduct in the audit of Cafe Coffee Day. The authority debarred the two chartered accountants involved in the audit for a period of 10 years. The investigation into Coffee Day Enterprises Limited (CDEL) was initiated based on information from the market regulator in 2022. The NFRA found significant lapses and non-compliance with auditing standards, leading to the penalties and debarment. This action underscores the NFRA’s commitment to maintaining high standards of auditing and financial reporting, ensuring accountability and transparency in financial practices. The penalties and debarment serve as a deterrent to professional misconduct and emphasize the importance of adherence to ethical and professional standards in auditing.