Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: VAT RATES :: form 3cd :: articles on VAT and GST in India :: list of goods taxed at 4% :: VAT Audit :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« News Headlines »
 TDS Rate Chart for AY 2018-19
 Last date to submit third installment of advance tax is December 15
 5 tax-saving funds that have given stellar returns in the past 5 years
 Find out which ITR Form is suitable for you
  Pr CIT vs. Baisetty Revathi (Andhra Pradesh High Court)
 What is income tax?
 Refund procedure initiated under GST
 Income tax returns (ITR) filing: How to get capital gains tax benefits on assets in own name
 7 avenues to help you save tax under Section 80C of Income Tax Act
 How to make income tax law less taxing
 Your Income Tax returns (ITR) filing revised? 5 points you must worry about

Multinational audit cos flouting rules: ICAI
September, 29th 2011

The Institute of Chartered Accountants of India (ICAI) has accused multinational audit firms operating in India of violating the Chartered Accountants Act, and has asked the Reserve Bank and the Ministry of Corporate Affairs to investigate their accounts.

A 168-page report prepared by the accounting regulator on Operations of Multinational Network Accounting Firms (MNAF), says that a few audit firms associated with MNAFs hold out to the public that they are MNAFs in India whereas to ICAI/regulators, they hold out that they are purely Indian firms having no relationship to foreign entities.

Many CA firms have not furnished complete information and have masked certain portions about their arrangements with multinational accounting firms and action would be taken against them for the same. The report observed that some firms have shared revenue with multinational entities, a clear violation of the CA Act.

Action would be taken against firms that have been found paying referral fees, receiving financial grants, and using name and logo of foreign associations, the report said.

The (ICAI) Council shall request the Ministry of Corporate Affairs, Reserve Bank of India and other relevant Ministries/Departments of Government of India to take appropriate action (to enforce compliance of law), ICAI said in the report.

However, the institute refrained from naming any multinational firm. Currently, the four big multinational audit firms operating in India are Ernst & Young, Deloitte, KPMG and PriceWaterhouseCoopers.

PwC was associated with auditing the books of Satyam Computer Services, now Mahindra Satyam, which was embroiled in a Rs 14,000 crore accounting fraud.

The accounting regulator also said that while India is negotiating with other countries to relax entry-level norms for Indian CAs, many international audit firms are already present and operating in India. In many cases, even where a firm is managed by Indian CAs, such firms are being governed by the international accounting firms.

As a result, this has adversely affected the bargaining capacity of India for Indian accounting profession under the ongoing negotiations in WTO/general agreement of trade in services, the report said.

The ICAI also observed that some of the Indian audit companies have name licence agreements to use international brand names, under which the affiliates have to align their policies with the network, which in turn influences decisions and functioning of the domestic firm.

In this manner, matters such as selection and appointment of partners, acquisition of assets, investment in capital, etc are regulated through the means of such agreements and at times even the representative voting is held by an aligned private limited company rather than the CA firms themselves, it said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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