Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: empanelment :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: cpt :: VAT RATES :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ACCOUNTING STANDARD :: due date for vat payment :: form 3cd
« Auditing »
 Supreme Court puts the spotlight on audit firms
 Auditing to be less of a burden as accountants embrace AI
 CAG's report on GST will be totally paperless
 Time Limit For Completion Of Assessment From The Date Of Special Auditor’s Report Under Income Tax Act, 1961
 Provisioning pertaining to Fraud Accounts
 Tax Audit Report (TAR) Certain exceptions and increased limits according to number of partners and considering nature of activity are desirable
 Cost Auditing Standards [ Cost Audit Documentation (102)] – Part-II
 Conference on Companies Act gets under way
 New bureau to dissolve state-run banks' power to choose auditors
 Foreign Exchange Management (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015
 ICAI forms 'prima facie' view on NSEL auditor

Supreme Court puts the spotlight on audit firms
February, 27th 2018

The Supreme Court on Friday put the spotlight on the Big Four multinational accounting firms, directing that a committee be set up to tighten regulatory oversight over them.

The order issued by the apex court directed the Union government to constitute a three-member committee of experts to scrutinize the existing regulatory regime and propose changes if required.

The ruling comes at a time when the role of auditors is already under scrutiny for their failure to detect the Rs11,400 crore fraud allegedly perpetuated by group firms of jewellers Nirav Modi and Mehul Choksi in collusion with officials of state-run Punjab National Bank (PNB).

“Financial statements audited by qualified auditors are acted upon and failures of the auditors have resulted into scandals in the past. The auditing profession requires proper oversight,” the court observed.

The committee has to be set up within two months and will thereafter be required to submit its findings to the Supreme Court in three months.

While the order made clear that framing a policy was the domain of the executive, the judiciary was perfectly within its rights to examine whether policy safeguards are in place and implemented.

The order was passed in a plea by the Centre for Public Interest Litigation (CPIL), a non-profit organization, seeking a probe into allegations of FDI violations and malpractices by UK-based audit firm PricewaterhouseCoopers Pvt. Ltd (PwC) and its associated companies.

PwC did not respond to emails seeking comment.

The order was delivered by a bench comprising justices Adarsh Kumar Goel and U.U. Lalit.

Ongoing investigation by the Enforcement Directorate into allegations of violations and malpractices by PwC have to be completed within three months.

Setting out the terms of reference of the expert group, the Supreme Court order said it would need to consider the need for an appropriate legislation or mechanism to govern the profession of auditors.

Apart from calling for suggestions from concerned authorities, it may also consider steps for effective enforcement of the provisions of the FDI policy and the Foreign Exchange Management Act, 1999, the order said.

CPIL, in its petition, had contended that there was a huge inflow of money due to FDI violations by PwC and other firms under its umbrella.

It further alleged that improper certification was being granted to auditors by the firms and payments worth hundreds of crores were being directed by way of subsidies, export incentives, grants etc., causing loss to the exchequer.

“The primary objective of an audit is to lend credence to the financial statements for conformance to accounting standards, presentation and disclosures, and not towards detection of all frauds. For detecting frauds, forensic audit would need to be carried out,” said Kamlesh Vikamsey, former president of Institute of the Chartered Accountants of India.

“The primary objective of an audit is to lend credence to the financial statements for conformance to accounting standards, presentation and disclosures, and not towards detection of all frauds. For detecting frauds, forensic audit would need to be carried out,” said Vikamsey.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions