IL&FS crisis: ICAI seeks explanation from audit firms
October, 15th 2018
IL&FS crisis: ICAI seeks explanation from audit
ICAI said it has issued notices to audit firms that conducted statutory audit works of
IL&FS group in the past few years.
New Delhi, Oct 11, 2018
Chartered accountants' apex body ICAI has sought explanation from audit firms that carried
out statutory audit works of crisis-hit IL&FS group in the past few years. The crisis at
diversified IL&FS, following loan defaults by some group entities, has raised concerns about
liquidity crunch in the financial system. Against this backdrop, the government seized control
of the IL&FS board earlier this month.
The Institute of Chartered Accountants of India (ICAI) Wednesday said it has issued notices
to audit firms that conducted statutory audit works of IL&FS group in the past few years.
However, specific details were not disclosed. In the recent past, there has been news reports
regarding diversion of loan money in IL&FS and its subsidiary companies, the ICAI said in a
"The Disciplinary Directorate of the ICAI, upon coming across such news report has suo
moto taken cognisance of the matter and pro-actively issued notices to the statutory auditors
on October 4, 2018 for the relevant years of the concerned company seeking their explanation
in the matter," it said.
The institute has also written to the Reserve Bank of India and the Serious Fraud
Investigation Office seeking details about IL&FS issue.
"Based on the responses received, the ICAI would be fast-tracking its investigation on the
role of member/ firm of the institute allegedly involved in terms of the disciplinary
mechanism," the statement said.