The Institute of Chartered Accountants of India (ICAI) has recommended strict penal action, including imprisonment, for auditors who are found associated with serious accounting frauds.
It also wants the Ministry of Corporate Affairs to frame a code of conduct for financial analysts and investment bankers for better scrutiny of firms that may indulge in such illegal affairs.
The recommendations are part of ICAI’s final report on Satyam scam and the role of Satyam's former statutory auditors from global auditing firm PriceWaterhouseCoopers. The report, finalised by ICAI’s highest decision-making council a few days ago, would be submitted to the ministry this week.
According to sources, ICAI has recommended strict action against auditors known to have collided with Satyam’s former promoter Ramalinga Raju in committing fraud. The committee has also recommended fresh scrutiny of the account books of all associate firms and subsidiary companies of the Raju family. ICAI officials confirmed that its apex council had finalised the report on May 13, but declined to provide details.
An ICAI sub-committee, which carried out extensive inquiry into the scam in January this year submitted its report to the institute’s council. The sub-committee report prima facie found fault with PriceWaterhouse auditors S Gopalakrishnan and S Talluri, and recommended disciplinary action, including a professional ban on the two individuals.
The central council of ICAI took time to firm up its views on the report as it wanted the accused auditors to be given a fair chance to present their case.
All the CAs will land in jail because all the balance sheets having frauds have /are being certified as clean balance sheets by CAs. All coopertive banks have a lot of frauds, irregularities and no CA has ever pointed it out. All public sector companies as well as private sector companies siphon out funds in different corrupt ways and no CA did his job. It has been understood that it is the duty of CBI, Police, committees to trace the frauds or crime.
This is widow dressing by ICAI. India Need only Public commitee Accounting Oversight Board( PCAOB).Auditors License to be issued by an Independent Authority, like the one that exist in UK(RQB-RSB-Secretary of State), Australia(ASIC), European Union, USA(Respective states), South Africa (IRBA)etc.PCAOB should have prescriptive compliance, for holding a valid license, which shall not grant exclusive rights to a professional body, such as the ICAI, instead focus on the skill set demonstration.
Posted by: gh
May 18 , 2010, 18:29 IST
hi ramshiva are u a chartered,if not then why commenting
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