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ICAI: Empower us to demand fin statements from cos
April, 01st 2010

The apex accounting body ICAI has sought more teeth from the government that would empower it to demand financial statements from companies and prevent Satyam-type accounting frauds in future.

"We are saying (to the government) that give us more teeth to summon financial information from corporates...we could get deeper. What we do currently is to see whether financial accounts, auditors' report, directors report, disclosures, etc meet the requirement of the accounting standards," Institute of Chartered Accountants of India (ICAI)president Amarjit Chopra told.

Under the current dispensation, the ICAI keeps a vigil on the activities of companies through its financial review board (FRB) which was set up in 2002.

The problem with the current system, he said, is that FRB cannot demand information directly from the company and has to depend on its member chartered accountants.

 
 
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