Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: VAT RATES :: TDS :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: empanelment :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: due date for vat payment :: list of goods taxed at 4% :: cpt :: form 3cd
 
 
« News Headlines »
 Income tax dept notifies amendments for sharing taxpayer information
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya

auditors and chartered accountants with a black brush
January, 08th 2009

The Satyam fiasco has called into question the sanctity of its auditors. Although its still early days to speculate whether Satyams 
auditors were party to the fraud or merely failed to perform their duties, it is beyond doubt that the whole incident threatens to paint the fraternity of auditors and chartered accountants with a black brush.

On the issue, an ICAI council member, who declined to be named said: 'As auditors, we definitely have a role to play. This incident gives the entire CA fraternity a bad name. If we unravel any wrong doings on the part of the auditors, the institute will initiate action against the concerned auditor.' KPMG head of markets Pradip Kanakia said: 'Audit professionals globally were just about recovering from the scam in the US and Europe. Now, auditors role will be questioned in India too. If negligence on the auditors part is proved, there will be huge dent on the confidence on auditors in general. Although, PwC is our competitor, this is not the time to rejoice.'

Mr Kanakia felt that given the magnitude and complexity of the fraud, role of everybody concerned would be questioned. 'This needs deep investigation and it would require months to unravel the whole story.' Mr AK Doshi, partner of Doshi, Chatterjee, Bagri & Co, also observed that it was a collective failure of the Satyam management, its board of directors, and senior executives, audit committee and its internal and external auditors. 'This seems to be a one-off incident and we need some more clarity to term this a systemic failure. So far what has come to the media glare may not be the whole story. This may have a negative impact on the confidence on CAs in general,' said Mr Doshi.

Satyam is listed in the US and accordingly may face penal action by the US Securities and Exchange Commission. 'Under Sarbanes-Oxley Act 2002 of the US, the Satyam management and its auditors may face penalty as well as criminal proceedings for wilful mis-representation of financial statement,' said Arijit Chakraborty, vice president Inkwest Management Consultant, a business advisory firm.

Another accountant said: 'Auditing as a profession may go down as a result of the incident. But unlike the Enron case in the US, no nexus has yet been proven between the auditors and Satyam. Also, auditors be in Big 4 or Big 20 get very little time to go through the information provide by the company given the pressure of quarterly audits. Having said that I must also say since cash was involved in this case, there must have been some lapse on the part of the auditors.

After all, auditors are required to go through reconciliation of bank accounts and obtain confirmation from bankers. They also need to check the fixed deposits.'

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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