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ICAI finds irregularities in operations of MNC audit firms
May, 08th 2012

The government today said accounting regulator ICAI has found irregularities in the operations of certain multinational audit firms in the country.

The high-power committee appointed by the Institute of Chartered Accountants of India for examining the operation of Multinational Network Accounting Firms (MAFs) has found the irregularities, Minister of State for Corporate Affairs R P N Sigh said in a written reply to the Rajya Sabha.

The Committee has observed that "certain Indian CA firms and private limited companies associated with them pose as if they are actually MAFs in India whereas to the ICAI report themselves purely as Indian CA firms having no relationship with foreign entities."

The Committee, in its report, has said that around 27 per cent of audit firms have furnished incomplete information and masked or not provided important information sought by the ICAI.

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