Page 3 - Auditors

Coffee Day audit lapses: NFRA slaps Rs 1.15 cr fine on 2 auditors, 1 firm

The National Financial Reporting Authority (NFRA) has imposed a ban and penalties totalling Rs 1.15 crore on three entities, including two auditors, for lapses in the auditing of Tanglin Developments Ltd and MACEL. Tanglin Developments Ltd (TDL) and Mysore Amalgamated Coffee Estate Ltd (MACEL) are subsidiaries of listed-entity of Coffee Day Enterprises Ltd (CDEL). Late VG Siddhartha and his family members controlled and owned CDEL. The case pertains to the diversion of funds worth Rs 3,535 crore from seven subsidiary companies of CDEL to MACEL. After markets regulator Sebi shared its investigation report in April 2022, NFRA started probing the professional conduct of the statutory auditors of TDL and MACEL. Separately, NFRA has imposed a fine of Rs 1 crore on audit firm Sundaresha & Associates, Rs 5 lakh on C Ramesh and further slapped a five-year ban on Ramesh and a two-year ban on Sundaresha & Associates, who were the statutory auditors of TDL during FY 2018-19. In ...

Auditors not expected to look at every single invoice, transaction: ICAI

Amid the auditors' role coming under scrutiny, ICAI's newly elected President Aniket Talati on Thursday said auditors are not expected to look at every single invoice and transaction but are required to obtain reasonable assurance that the financial statement of a firm is free of material misstatement. The role of the auditors came under scrutiny, especially in the post-IL&FS crisis. "Our auditing standard is today largely in line with international accounting standards. You cannot expect that when a listed company is giving quarterly financial results in 45 days and 60 days for the year-end, it can never be intended that you are going to look at each and every single transaction. It has never been the expectation of an audit," Talati said. According to him, the expectation from a statutory auditor to look at 100 per cent invoices and 100 per cent transactions has never been there and an auditor is expected to exercise the highest level of integrity. The auditing entity needs to ..

Market regulator Sebi penalises former audiitors of CG Power for violations

India's market regulator penalised two former auditors of CG Power and Industrial Solutions Ltd on Thursday for rule violations, according to an order published on the regulator's website.

NFRA imposes fine, bans auditors for misconduct in audit of DHFL branches

The National Financial Reporting Authority (NFRA) has imposed a fine and a one-year ban on four auditors for alleged professional misconduct in connection with the audit of branches of Dewan Housing Finance Corp Ltd (DHFL) in 2017-18. DHFL (now known as Piramal Capital and Housing Finance Ltd) is a listed entity, owned and controlled by Piramal Group. In four separate orders, NFRA levied a fine of Rs 1 lakh each on auditors -- Mathew Samuel, Sam Varghese, Harish Kumar T K and M Baskaran. The auditors are partners of audit firm K Varghese & Co. Besides, all of them were restrained for a period of one year from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate during the ban period, the order said. "The investigation by NFRA revealed prima facie evidence that the branch auditors had violated both the Companies Act, 2013 and the Chartered Accountants Act, 1949 by accepting the appointment that ..

Coffee Day Global, MACEL audit lapses: NFRA slaps Rs 1.25 cr fine

The National Financial Reporting Authority (NFRA) has imposed a ban as well as penalties totalling Rs 1.25 crore on five entities, including four auditors, for lapses in auditing of Coffee Day Global Ltd and MACEL during 2018-19 fiscal. Coffee Day Global Ltd (CDGL) and Mysore Amalgamated Coffee Estate Ltd (MACEL) are subsidiaries of listed-entity Coffee Day Enterprises Ltd (CDEL). Late V G Siddhartha and his family members controlled and owned CDEL. The case pertains to diversion of funds worth Rs 3,535 crore from seven subsidiary companies of CDEL to MACEL. After markets regulator Sebi shared its investigation report in April 2022, NFRA started probing the professional conduct of the statutory auditors of CDGL. Separately, NFRA has imposed a fine of Rs 5 lakh and slapped a five-year ban on Lavitha Shetty, who was the statutory auditor for MACEL during 2018-19 period. In connection with CDGL, the audit regulator has slapped a fine of Rs 1 crore on audit firm ASRMP & Co, Rs 10 lak

Statutory auditors to submit annual transparency report, says NFRA

Salaries of partners; audit, non-audit fees; details of network firms among information to be shared

Auditors in Iraq uncover $2.5 billion tax fraud from nation's authority

Auditors in Iraq have uncovered a massive scheme in which a network of businesses and officials embezzled some $2.5 billion from the country's tax authority, despite layers of safeguards. The scandal poses an early test for Iraq's new government, which was formed late last month after a prolonged political crisis. Prime Minister Mohammed Shia al-Sudani has vowed to crack down on corruption, but few expect any senior officials or political leaders to be held accountable. The scale of the embezzlement is remarkable, even for an oil-rich country where corruption has been rampant for decades. Transparency International, a global watchdog, rated Iraq 157th out of 180 countries on its 2021 index for clean governance. The auditors' report, obtained by The Associated Press and first reported by the Guardian, suggests the theft was orchestrated by a broad network of officials, civil servants and businessmen. In Iraq's deeply-rooted patronage system, such individuals often have links to ..

Auditors' timely red flag may have stopped many financial misdoings: NFRA

Many financial misdoings could have been detected and averted at an early stage if the auditors concerned had pointed out such instances to stakeholders in time, a top NFRA official has said. The National Financial Reporting Authority (NFRA) was set up in October 2018 and has more than 8,000 listed and other companies under its purview. "Not only in hindsight but otherwise also, I believe that had many of the violations that we observe in our proceedings been pointed out by the auditors to the shareholders and other stakeholders in time, many of the financial misdoings could have been detected and averted at an early stage," NFRA Chairperson Ajay Bhushan Prasad Pandey told PTI in an interview. He was responding to a query about corporate misdoings in the country over the years. In many cases, auditors have come under the regulatory scanner. The regulator has been taking measures to further strengthen the auditing system and processes. It has issued various audit quality review repo

With a loss of Rs 4,588 crore, Byju's FY21 report card has many red marks

The FY21 revenue figure of Rs 2,428 cr is similar to the revenue figure of Rs 2,434 cr in the previous year, though the difference is that the bottom line in 2019-20 showed a profit of Rs 51 cr

MCA tweaks rules about company deposits, enhances statutory auditors' role

The new rules, according to experts, will widen the responsibility of directors to the statutory auditors. They came into effect on August 29

Vote against reappointment of Harsh Mariwala: SES to Marico's shareholders

Seeks approval for revision in remuneration payable to Marico's cost auditors

Srei group transaction auditor reports Rs 3,025 cr fraud in FY20 and FY21

Srei Equipment Finance said its administrator has received a report from the transaction auditor about certain fraud transactions in FY20 and FY21, bearing a monetary impact of over Rs 3,025 crore

CAG vs govt: The growing tussle between the auditor and the audited

Over the past decade, rapid structural changes in the economy have radically altered what was once a low-profile department

New reporting requirements for companies put onus on auditors

Auditors to certify that transactions are not violative of PMLA/FEMA rules, according to ICAI guidelines

PM Modi to address event to mark the first Audit Diwas on Tuesday

Prime Minister Narendra Modi will address an event on Tuesday to mark the first Audit Diwas at the CAG office.

Auditor resignations continue to trickle in with 15 exits since April

On average, one auditor of a listed company has prematurely resigned every two weeks this financial year; pace seems to have picked up in September with 5 departures

New auditors: Reserve Bank of India clarifies on tenure, eligibility norms

Industry lobbies have called for a review of the circular issued on April 27

Sebi to empanel auditors to conduct forensic audits of listed companies

Markets regulator Sebi is looking to appoint auditors for conducting forensic audits of financial statements of listed companies as part of efforts to curb frauds.

CII protests RBI rules on auditors, says will cause 'enormous difficulties'

The central bank has asked most banks and NBFCs to immediately appoint new auditors.

Four years after Modi push, no Indian firm in top league of auditors

Some prime slots are at best held by Indian arms of foreign firms with roots in Europe; govt itself favours the big four for mega advisory roles like disinvestment or asset monetisation