Centre to pose tough questions to auditors for quitting companies

There has been a spate of resignations by auditors who want to derisk themselves from companies whose accounting practices may be questionable

The government will seek detailed information from auditors on the reasonsfor resignation from companies, a senior government official told Business Standard. Following Price Waterhouse & Co’s (PWC’s) resignation as auditor of Reliance Capital and Reliance Home Finance and its complaint against the company, authorities have said that hard questions will be asked of both parties before any decisions are made.

“We should go through all the steps. We cannot take a complaint at face value. We have to ask serious questions to the company, to the joint auditor as well as the auditing company,” the senior official said. 

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