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
« Auditing »
 Supreme Court puts the spotlight on audit firms
 Auditing to be less of a burden as accountants embrace AI
 CAG's report on GST will be totally paperless
 Time Limit For Completion Of Assessment From The Date Of Special Auditor’s Report Under Income Tax Act, 1961
 Provisioning pertaining to Fraud Accounts
 Tax Audit Report (TAR) Certain exceptions and increased limits according to number of partners and considering nature of activity are desirable
 Cost Auditing Standards [ Cost Audit Documentation (102)] – Part-II
 Conference on Companies Act gets under way
 New bureau to dissolve state-run banks' power to choose auditors
 Foreign Exchange Management (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015
 ICAI forms 'prima facie' view on NSEL auditor

Corporate India on audit alert
February, 24th 2009

The Satyam fraud is acting like a wake-up call for several Indian companies that have started asking their auditors to make detailed presentations on the accounts that they have already certified.

The role of the auditor has come under the scanner after two auditors from Price Waterhouse, who verified Satyams books of accounts, were hauled up by investigating agencies which are trying to understand the financial shenanigans that Satyam promoter B. Ramalinga Raju perpetrated over several years.

Many of the companies that have made the requests to the auditors for presentations are listed on the bourses. A senior official with the Institute of Chartered Accountants of India (ICAI) said the requests were informal in nature.

Audit firms that have received such requests include the Big Four and local firms. It seems that top management is keen to re-acquaint itself with the nitty-gritty of accounting and audit norms and procedures that have been adopted.

Sources said the companies were looking for reassurance from audit firms. The independent directors on the boards especially the ones serving on the audit committees have been insisting on these presentations.

The audit committee directors at several Indian companies are very nervous at this point of time. Companies are keen that auditors come back to take another look at the accounts and comfort them with additional information on how these audits were done and the precautions taken during the procedure, said a partner with one of the Big Four firms.

The names of the companies that have opted for these informal presentations are not known as yet. However, some audit firms said the practice was spreading.

ICAI president Uttam Prakash Agarwal said, I have not heard of managements questioning auditors about the procedures they adopted during the audit process. If they are, then it is a reaction to Satyam.

But, I must say that it is unfair as nobody has yet pinpointed that the auditors were involved in the Satyam fraud. It was done by Satyams management and it wasnt a case of negligence by the auditors. Id also like to ask how many of the managements of Indian companies actually understand accounting and auditing procedures. It is a specialised field and the reaction of companies is baseless and really not required, Agarwal said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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