Rising level of scrutiny: Auditors take guard on corporate breaches

The Centre has already proposed to establish an independent National Financial Reporting Authority for the auditing

In the past month, auditors of three listed companies – Manpasand Beverages, Atlanta and Vakrangee — have quit, citing potential violations. In another instance, Hindustan Construction Company (HCC), they have raised red flags. 

In the recent past, the role of auditors has come in for widespread criticism from government and regulatory agencies, including the Securities and Exchange Board of India (Sebi). This has led to auditors taking a stricter stance.

Experts say the recent Sebi verdict against global accounting giant Price Waterhouse (PW) in the Satyam Computer case has got the bigger auditors worried at the implications of negligence on their part.