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
Latest Expert Exchange
« News Headlines »
 How much tax are you liable to pay on long-term capital gains on property?
 How To Save Tax Deductions Despite New Law
 Companies (Appointment and Qualification of Directors) Sixth Amendment Rules, 2018.
 Easier tax refund regime for exporters in the works
 Income tax on your gold and real estate investments
 Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Central Goods and Service Tax Rules, 2017 in certain cases
 How RBI dealt with the crisis amid tensions with FinMin
 Pay tax on this PF account withdrawal Income tax return (ITR) filinga
 Seeks to make amendments (Ninth Amendment, 2018) to the CGST Rules, 2017.
 How govt is dealing with tax evasion, corporate fraud
 How to check income tax return (ITR) status

Satyam, an audit process failure: Mr T.V. Mohandas Pai
January, 17th 2009

The Satyam fiasco should be seen more as an audit process failure and not as an accounting issue, Mr T.V. Mohandas Pai, Member of the Infosys Board and Trustee of the IASC Foundation, said.

It is a failure of the auditing process. The auditing process says very clearly that you must ask for an independent confirmation of bank balances from the banks. To me it looks as if it has not been done.

As auditors, you write to the banks and ask for a confirmation directly. You do not go by the records of the company that is how it has to be done as per the standards, Mr Pai told reporters here.

Mr Pai was in the Capital to attend the first ever meeting in India of the trustees of the IASC Foundation. The IASC Foundation governs the International Accounting Standards Board (IASB), which is standard-setter and the body behind International Financial Reporting Standards (IFRS), which is emerging as a gold standard for accounting.

What happened in Satyam was more to do with the failure of the auditing process, failure of corporate governance process. India has good auditing standards, India follows global auditing standards and it has done well.

But the key thing is that someone played a fraud we should not blame auditing or accounting for this. What we should say is that the process has failed, Mr Pai said, when asked to comment on financial irregularities at Satyam.

Meanwhile, Mr Pai said that India should reaffirm its commitment on full convergence with IFRS from April 1, 2011.

Full IFRS adoption will enable Indian companies to access capital globally at lower cost. It will increase credibility of foreign investors in balance sheets of Indian companies, which is very essential today. It will also make sure over a period of time that companies in India can tap into global pool of capital. Mr Pai said that trustees of the IASC Foundation would at their meeting later in the day with the Corporate Affairs Minister, Mr P.C. Gupta, and the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, underscore the need for full IFRS convergence by 2011.

We will possibly ask them to request large Indian companies to move to IFRS a year before the committed timeline, he said, highlighting that Infosys had already from this financial year (last two quarters) started filing documents with US regulators under IFRS.

Asia and countries in Oceania are going to form an important part of the global accounting and financial architecture community. India is complying 85-90 per cent IFRS. There are some non-compliance issues because the legislation is behind the curve. Our Companies Act needs to be modern.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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