Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT Audit :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: cpt :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: form 3cd :: articles on VAT and GST in India :: TDS :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ACCOUNTING STANDARD
« Auditing »
 Time Limit For Completion Of Assessment From The Date Of Special Auditor’s Report Under Income Tax Act, 1961
 Provisioning pertaining to Fraud Accounts
 Tax Audit Report (TAR) Certain exceptions and increased limits according to number of partners and considering nature of activity are desirable
 Cost Auditing Standards [ Cost Audit Documentation (102)] – Part-II
 Conference on Companies Act gets under way
 New bureau to dissolve state-run banks' power to choose auditors
 Foreign Exchange Management (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015
 ICAI forms 'prima facie' view on NSEL auditor
 Firms appoint new auditors in shift to meet new standards
 Cadre restructuring in I-T dept may open scrutiny of closed cases
 RBI issues new guidelines on concurrent auditing at branches

Audit firms may also face action in Satyam-like cases
July, 25th 2011

New Companies Bill to propose equal responsibility of auditors, firms. Unlike in the multi-crore Satyam fraud, audit firms will not be able to wash their hands of corporate scams perpetrated by companies in connivance with their partner auditors.

The Companies Bill, 2011, being finalised by the Ministry of Corporate Affairs (MCA), would seek to make audit firms and auditors equally responsible for such wrongdoing, said a senior official.

MCA had assured a parliamentary panel that looked into an earlier version of the Bill that it would ensure that audit firms did not escape by putting the blame on auditors.

The need for such a clause was felt after B Ramalinga Raju, founder of the erstwhile Satyam Computer Services, admitted to having cooked the companys account books to show non-existent profits. The fraud was estimated to be of the order of Rs 10,000 crore.

While Satyams auditors chartered accountants who were partners of associate audit firms of global consultancy PricewaterhouseCoopers were arrested for alleged collusion with the management, the audit firms were left untouched.

Under the current law, besides criminal proceedings, the Institute of Chartered Accountants of India (ICAI) can bar the guilty auditors from doing auditing work for a specified period.

Under the ICAI Act, members found guilty of professional misconduct can be barred from practice for up to five years or fined up to Rs 5 lakh. However, no action could be taken against the firms, either under the ICAI Act or the Companies Act.

ICAI is conducting disciplinary proceedings against two PriceWaterhouse auditors, Srinivas Talluri and S Gopalakrishnan, for erroneous auditing of Satyams books.

The Bill would propose that if the audit partner or partners were proved to have acted in a fraudulent manner or abetted or colluded in any fraud by the company, its directors or officers, the audit firms would be equally liable for civil or criminal proceedings.

The parliamentary panel welcomed the stringent proposals.

The Companies Bill, 2011, would also propose a maximum of 10 years imprisonment, besides a fine of up to three times the amount involved in the fraud, for the guilty auditors.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions