New ICAI chief: Probe into Satyam scam to end in 6 months
March, 02nd 2011
The New President of the Institute of Chartered Accountants of India, G Ramaswamy has said a special bench has been constituted to look into the Satyam matter. The special bench includes nominees from the central bureau of investigation and the comptroller and auditor general of India.
Ramaswamy said that he expects the ICAI proble into the Satyam case to end in the next six months. He said the high court's judgements will be considered while framing the Satyam report.
He said the ICAI will look at helping companies find projects for compliance of corporate social responsibility. He offered the government full support to formulate rules to track transactions in the real estate sector. He also said that proper disclosures on foreign donations to NGOs and NPOs were needed.
ICAI's new chief said that a proposal to act against erring audit firms is still pending with the government. Ramaswamy said, "Auditor rotation is vital for PSEs, not for small companies." He said the ICAI advocates a joint audit for companies along with auditor rotation.
He commended the Ministry of Corporate Affairs for taking bold steps in notifying accounting standards for implementation of IFRS. He does not expect the rollout of IFRS to be deferred.
Ramaswamy said, "Tax issues related to convergence in IFRS will be resolved. More clarity however is needed on computation of income under IFRS." He said ICAI has made corrections to the IFRS to suit the Indian environment.
On the ADAG entities case for which the ICAI had sought clarity on misclassification of accounts, Ramaswamy said that ADAG entities would likely have responded to ICAI's notices.