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Can a broken songbird sing?

From principles of prudence and conservatism, which enabled auditors to certify that the numbers are "true and fair", there is a shift to "fair value"

Topics
Auditing  |  Sebi  |  Rbi

Amit Tandon 

Amit Tandon

It is a scary time for the big four auditors in India. Their worry is not so much the business model of providing audit and a myriad of non-audit services; that, if regulators demand, they will reluctantly tweak just so. It is the audit quality and the numbers they have recently printed, that shareholders, lenders and regulators are now questioning. The Securities and Exchange Board of India (Sebi) banned PwC in 2018 from listed companies for two years for its involvement in Satyam Computers Services Limited. Last month, the Reserve Bank of India barred SR Batliboi & Company LLP, an affiliate of EY, from carrying out statutory audit assignments of commercial banks for one year. The Serious Fraud Investigation Office has charged Deloitte Haskins & Sells LLP and BSR and Associates LLP (part of the KMPG network), for their failure in not disclosing the true financial health of IL&FS Financial Services Limited and the Ministry of Corporate Affairs (MCA) looks at banning them from undertaking audits for a period of five years.

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First Published: Thu, June 20 2019. 20:47 IST
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