News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
« Top Headlines »
 ITR filing deadline for FY 2019-20 extended till November 30
 Amendment of rule 31A, Form 26Q & 27Q
 5 key tax-related updates you need to know
 New TDS rates on high-value cash withdrawals apply from today. Know the details
 I-T department extends deadline for 2019-20 tax saving investments to July 31
 Income-tax (13th Amendment) Rules, 2020
 Filing tax return for the 1st time? Here's everything you need to know
 7 changes in income tax rules you need to know
 Extension Of The Income Tax Return Deadline For Year Of Assessment 2020
 Income Tax Return filing for FY2019-20: Here is all you need to do before filing your ITR
 Filing belated income tax return for 2018-19? Here is how you can file it online

PwC may be quizzed by US regulator
January, 15th 2009

PricewaterhouseCoopers (PwC), which is facing a multiple-agency probe within the country for its unreliable audit of Satyam Computer Services leading to a Rs 7,000-crore accounting scandal, holds a further risk of being quizzed by US accounting regulator in India, said Institute of Chartered Accountants of India (ICAI) president Ved Jain.

For this, the Public Company Accounting Oversight Board (PCAOB), the US accounting regulator, does not even require an approval from the Indian government.

PCAOB, which is authorised to inspect the books of any firm that has audited the books of any US-listed company, will not require any regulatory approval in India, and can do its investigation as per its own norms. This will mean that in case a formal investigation is ordered by the PCAOB, PwC will be thrown open to a risk of losing its auditing rights in the US.

Incidentally, PCAOB had in early 2008, made inspection of the auditing processes of several international accounting firms that had audited US-listed Indian firms. An accounting consultant, on condition of anonymity, said the inspection had extended for all the Big Four audit firms in India, that includes PwC, Ernst and Young, KPMG and Deloitte.

Admitting this fact, a spokesperson for the US regulator said: PCAOB has performed inspection work in India. We do not, however, release the names of companies whose audits are reviewed.

Even as PwCs role in Satyams alleged accounting fraud is being investigated by the Indian government and its accounting regulator ICAI, the US counterpart can take independent actions if it finds it appropriate. This will mean that PwC as a firm may also lose its auditing rights in the US, if it is found guilty under the US norms.

As per the regulations in the US, the regulator can revoke its registration if a firm is found guilty after a formal investigation. Revocation of the registration is the maximum punishment that can be imposed by the PCAOB.

In India, the Serious Fraud Investigation Office (SFIO) has already begun looking into the affairs of PwC in the case, and is likely to come up with its report within 3 months.

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting