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| ICAI working a second report on Satyam |
| BS Reporter / Hyderabad Aug 29, 2009, 15:22 IST |
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The Institute of Chartered Accountants of India (ICAI), the regulatory body of chartered accountancy in India, is now making a final report on the auditors role regarding the massive accounting fraud at the Satyam Computer Services Limited, according to ICAI president Uttam Prakash Agarwal.
This is the second investigation by the apex body of chartered accountants. It had already submitted the first report along with the recommendations to the Ministry of Corporate Affairs last month.
Speaking to the media here on Saturday on the inaugural day of its 41st regional conference 'Jnana Yajna', he said that a high power disciplinary committee of the ICAI would shortly visit Hyderabad to study issues relating to failure of adherence to the accounting practices, corporate governance, role of independent directors and other stakeholders in the Satyam case.
"The investigation is a priority for us,'' he said. He declined a give a time period in which the investigation would be completed but would be done before February next year, when his term as the president would end.
The report from the disciplinary committee would again be submitted to the ministry for further action against the auditors. The ICAI president declined to say what kind of action it would recommend to the chartered accountants who audited the Satyam accounts, if proven guilty.
Agarwal said that S Gopalakrishnan, one of the partners and auditors of Price Waterhouse who signed the financial statement of the scam hit Satyam Computers, has been stripped of all non-standing committee posts two weeks ago. However, he would continue as council member as it was not in the jurisdiction of the ICAI president to remove members from the council posts, Agarwal said.
In the wake of Satyam episode, ICAI had asked all its members to look for external evidence before certifying the accounting statements to ensure that similar incidents do not recur.
ICAI was now working to bring awareness among its members about International Financial Reporting Standards, which would come into effect from April 2011. It was also tying up for various professional bodies overseas for mutual recognition of programmes.
Earlier in the day, chief minister YS Rajasekhara Reddy, who inaugurated the two-day event, referred the Satyam case was a system failure and urged the chartered accountants to be more vigilant in giving certificates to the companies.
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