Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Tally On Cloud Tally on Cloud: Ready for the Daily Backup Requirement
Keep your Tally books accessible from anywhere while supporting your Rule 46(8) obligations. With daily backups configured on servers physically located in India, Tally on Cloud helps you maintain the backup arrangement required for electronic books of account under the Income-tax Rules, 2026. Move your Tally to the cloud with confidence.
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.
 Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief
 ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know
 Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose
 CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27
 CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details
 Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window
 Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do
 Tax audit deadline September 30: Common mistakes taxpayers should avoid
 Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck
 Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money

CAs should be able to call for a/c restatement
May, 25th 2009

Uttam Prakash Agarwal, president of Institute of Chartered Accountants of India (ICAI), has been in focus lately, handling queries on the role of auditors in the Satyam Computer fiasco. Agarwal, who is also chairing the six-member high-level committee set up by ICAI to look into the Satyam scandal, talked to Vivek Seal of DNA on a host of related issues. Excerpts:

What have you learnt from the Satyam chapter?
Satyam case is a failure of management. It is a fraud. It is not a failure of auditing and accounting system at all, let me put it on record. It is a failure of corporate governance, which is only there on paper, and it was the management which was executing it.
Don't you think corporate governance is connected to auditing at some level?

No, it is a totally different issue. Corporate governance says this should be the audit committee; then independent directors are there; so many compliances are there from Sebi and Income Tax. This is not a fraud of one year but of last five years. Why is it that no one raised any doubt in the last five years? If Raju would not have come forward with the confession, I think he would have continued with the fraud for a number of years.

There are so many people there, but one points a finger only at the auditors. What about the others?

So, auditors made a mistake?
Even after so many agencies working together, no one has been able to pinpoint what the failure was; none has given a conclusion yet.

The matter is still in progress because it has happened over a period of five years; in just three months, you cannot give a clear verdict.
Role of the auditors should also be explained here, many people still think that role of CA is to issue cheques and other business things.

But in real sense, accounts and financial statements are prepared by the management; the responsibility lies with them; auditor never writes the book of accounts. What we do is that we give our opinion; we do not give a certificate. We just say whether it is true and fair; we do not even say true and correct.

Suppose during the audit process we observe that there is a serious fraud. I have no right to charge the management or the company under any law. I simply write in my report that there was a fraud of this much amount; we only qualify, and that's it.

So do you want more powers now to deal with frauds?
Yes, after the Satyam case, we requested the corporate affairs ministry to give more powers to chartered accountants. If accounts are not up to the standard, I should have the right to tell you that you should restate your accounts. Now, even knowing that everything is wrong, we simply write four lines -- that accounts are not up to the mark.

We should have powers for restatement of accounts. My auditors should be more vigilant and not rely on management views. The restatement matter is in front of the corporate affairs ministry and the decision is expected soon --- they sound positive.

What are your views on the case related to Arthur Andersen, which was criminally charged in the US for its handling of the audit of Enron? Both the companies eventually closed their operations. Also, what are your views on the role of PricewaterhouseCooper in the Satyam issue?
We have no provisions here to ban them. What we do is give a licence to a member. We withdraw the licence if we find something wrong. That is our power. I have no power against them. I cannot do anything beyond the rules and regulations. This is not an association, and ICAI was set up by an Act of Parliament.

What if you have the power?
If I have the power, then I would be the first person to exercise it, whatever power I have, I exercised it in the Satyam case, including the interrogation of members outside of my disciplinary committee process.

Any development on your peer review plan?
In 2002, the council considered having a peer review system in ICAI and accordingly approved a statement on peer review, which defines and contains who the eligible firms are; who will be the reviewer; the training system; reporting; remuneration and constitution, etc. Through a process of peer review, an experienced reviewer will go and enhance the service quality of auditing and accounting.

Now, the issue is how to implement this. We have members who are conducting this, who have at least 10 years of experience. What they do is they monitor by reporting, documentation, training, compliance and implementation of technical standards through the peer review system. We have around 12,000 reviewers as of now, and after the Satyam case, this will increase the credibility of accounts.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2026 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting