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Satyam scam: CA institute submits final report to Govt
May, 26th 2010

The CA Institute's second and final report on the Satyam scam and the role of the company's statutory auditor in that accounting fraud was submitted to the Corporate Affairs Ministry on Monday.

The Central Council had, recently, approved the second report, sources in the CA institute said. The ICAI's High Powered Committee, set up at the Government's behest soon after the Satyam scam came to light had submitted its first report to the Ministry of Corporate Affairs on July 17 last year.

Meanwhile, the ICAI is likely to make recommendations in the coming weeks to the Government for further amendments to the CA regulations. Indications are that the audit profession regulator would recommend changes in regulations to empower the CA institute to punish not only the concerned audit partner, but also the audit firm in situations of audit or accounting frauds.

Under the current regulations, the CA institute or its disciplinary committee cannot take penal action against any audit firm for involvement of a partner in any accounting fraud.

 
 
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