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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Auditing »
 Supreme Court puts the spotlight on audit firms
 Auditing to be less of a burden as accountants embrace AI
 CAG's report on GST will be totally paperless
 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

CAG rejects audit meet records
August, 31st 2009

CAG has accused the oil ministry of circulating records of two crucial meetings without its concurrence or confirmation on the issue of auditing the expenses incurred by private companies, in developing oil and gas fields, including a BG-led consortium and Mukesh Ambani's RIL.

With the companies developing oil or gas fields in which the government has substantial financial stakes, CAG's principal director of audit has refused to accept the records sent on August 24, telling the ministry that they do not fully reflect the discussions that took place or take into account the government auditor's prerogative and views.

The meetings, held on August 17, were called after CAG said it had problems accessing records of private operators but did not name any group. The statement was part of a denial to a posting on the website of exploration regulator DGH, claiming CAG had completed audit of RIL's field. The DGH posting was put up a day after Anil Ambani reiterated charges that RIL was artificially jacking up cost of developing the Andhra offshore field.

One meeting pertained to the audit of Panna-Mukta and Tapti fields operated by BG in partnership with RIL and state-run ONGC. The other meeting discussed RIL's Andhra offshore field, identified as KG-DWN-98/3.

Expressing reservations over the record on RIL's field, the CAG letter said, "The understanding of our audit team was that during the meeting, the contractor's representative expressed considerable reluctance to provide access to records for the previous years till 2006-07 and no dates for the entry conference were discussed or decided during the meting... such a conference will have full purpose only when we have documented clarity about our exact audit access. So far, we have not received any such written confirmation of such access."

TOI had reported on August 24 that RIL had, after the August 17 meeting, written to the ministry the same day to accept CAG audit as a "one-time exception". Responding to a TOI query, the company had said it had done so voluntarily for the sake of transparency.

Regarding the Panna-Mukta-Tapti fields operated by a BG-led consortium of RIL and ONGC, the letter said the "unilateral" statements of DGH, on merging scope of audits, was opposed by CAG officials but did not find mention in the records. "You would be aware that the CAG is an independent constitutional authority, and we would be entirely responsible for deciding the scope, extent and coverage of the audit," the letter said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

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