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Report of the meeting with Ms. Parveen Tripathi - ICAI
February, 13th 2009

A meeting with Ms. Parveen Tripathi, Dy. C&AG was held on 9th February, 2009. The meeting was attended by the President CA. Uttam P. Agarwal, Vice-President CA. Amarjit Chopra and CA. Anuj Goel, Chairman, PDC. In this meeting, Shri K. P. Sasidharan, Principal Director (Commercial) and nominee of the C&AG of the Central Council was also present. A brief report of the deliberations is as follows:-

* C&AG agreed to share the list of audit firms which have been denied audit work with RBI.

* ICAI will inform C&AG about the name of members who are found prima facie guilty on a periodical basis. Based on this information, the C&AG will consider debarring such member as well as the firm(s) of which such member is partner for allotment of audit.

* The ICAI has been asked to suggest to thresh-hold limits in terms of paid up capital, turnover etc. for prescribing compulsory joint audit in public such undertakings. C&AG officials also offered to evaluate remuneration scale so that joint audit can be made attractive.

* It was impressed upon Dy. C&AG that auditors should not be removed before the completion of their tenure on flimsy grounds because it affects the independence of auditor. In case, there are instances involving allegation against audit firms by the management, the same may be brought to the notice of ICAI for initiating disciplinary cases. Further, Dy. C&AG suggested that an ICAI representative may be invited to attend departmental Disciplinary Committee of the C&AG where such cases are discussed.

* The ICAI was asked to suggest a criteria for fixation of remuneration which is affordable and reasonable because it was felt that having regard to fees scale recommended by ICAI, remuneration works out to be quite high. In this context, the ICAI was asked to submit a comparative table of remuneration worked out as per recommended scale of fees alongwith fees payable and the private sector entities of similar nature. The method of fixation of remuneration adopted by the banks, cooperatives etc. may also be furnished by ICAI.

* A report was made by ICAI to extend the date of filing C&AG Empanelment Form for PSU audits by the auditors from 16th February, 2009 to 20th February, 2009 which was accepted by Dy. C&AG.

* The ICAI impressed upon Dy. C&AG to refer PSU balance sheets on regular basis to FRRB.

* Dy. C&AG also agreed with the ICAI that the principal of joint audit as well as rotation of auditor are good measures and agreed to take up with other regulator like SEBI as well.

* It was decided that ICAI will jointly organize a Training Programme for C&AG officials at Delhi. Further, it has been decided to organize Joint Workshops involving C&AG, ICAI and PSU auditors at six locations in the country viz., Delhi, Mumbai, Kanpur, Jaipur, Kochi & Kolkata.

 
 
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