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 INPUT TAX CREDIT IN VAT :: form 3cd :: list of goods taxed at 4% :: TDS :: due date for vat payment :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: cpt :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: VAT RATES :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company
 
 
News Headlines »
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax

Satyam CAs, auditors may face severe punishment, PriceWaterHouseCooper, declined to comment on the issue
January, 08th 2009

The apex body of Chartered Accountants ICAI said on Wednesday that any member of the body found guilty in the Satyam  financial wrong doings would be severely punished; auditors who were involved could even face a lifetime ban from practising.

"We will ensure that, to any person who has not worked according to our standards and our expectationsm severe punishment be given," ICAI President Ved Jain said after the financial wrong doings by India's fourth largest IT company were unearthed.

ICAI has said it will seek an immediate explanation from Satyam Computer's auditors, PriceWaterHouse Cooper, on the financial fraud perpetrated by the software company's chairman, B Ramalinga Raju, before taking any action.

"ICAI will write a letter to PwC tomorrow and will seek an immediate reply on the issue and inform them about the
process of investigation, which is on," ICAI President Ved Jain told PTI.

He said that strict action will be taken if the auditors, of country's fourth largest IT firm Satyam, are found guilty.

PriceWaterHouseCooper, declined to comment on the issue.

Following a letter from Satyam Chairman Ramalinga Raju, who accepted that he had misrepresented facts in the company's balance sheet, the role of the auditors and accountants for the company has also come under the scanner.

In fact, the ministry of corporate affairs announced that the role of the directors and auditors at Satyam will be scanned by ICAI and the apex body of company secretaries, ICSI.

Jain also pointed out that, before the body takes any action against the members involved in the "fraud", it needs to collect all the facts and information. "We are looking into that and we will start our proceedings," he added.

Commenting on whether it was possible that the auditors were kept in the dark about the misrepresentation of the accounts, Jain said it depends on the facts and circumstances of the case.

"As the information is tricking down to us, we need to examine what has really happened and how it has all happened," he said.

About possible action against the auditors and/ or others party to the financial wrong doing, Jain said that under the Indian Penal Code any person party to a fraud or cheating can be convicted.

"All one needs to prove is he was the party to the fraud. He can be booked under the Companies Act and the Chartered Accountants Act... In case of negligence by the chartered accountant, we have severe punishment," Jain said.

 Meanwhile, the apex company secretaries body ICSI said that, at this stage, the body has not come into the picture. "If any member found guilty, we will deal with it according to the company secretaries' law," ICSI President Keyoor Bakshi said.

In the Company Secretaries Act, there is a provision for disciplinary action. If any member, Satyam's company secretary in this case, is found guilty then the maximum ICSI can do is suspend membership, Bakshi added.

He also pointed out that the body has not yet asked for the report from the company and the report will come to them eventually.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

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