Chartered accountants' apex body ICAI on Friday said it has taken suo motu cognisance of the $1.77 billion fraud at PNB and has sought information from investigation agencies besides setting up a group to study the system issues arising out of the incident.

The Institute of Chartered Accountants of India (ICAI) would review the PNB matter to look at whether there have been lapses on the part of auditors. ICAI President Naveen ND Gupta said it has taken suo motu cognisance of the fraud at PNB.

“The Financial Reporting Review Board (FRRB) has been advised to initiate suo motu review of Punjab National Bank and Gitanjali Gems matter,” he said. The board, set up by the institute, reviews the compliance with various accounting and auditing standards.

In a statement issued in the evening, Gupta said the institute has suo motu triggered its disciplinary mechanism by writing to the bank concerned, markets regulator Sebi as well as ED and CBI, seeking details of their investigations.  #casansaar (Source - PTI, DailyPioneer)