Auditing Standards

The US watchdog has charged Ernst & Young and six of its current and former partners for their roles at a fitness business, for failing to know about its fraudulent financial accounting and disclosures. E&Y in the US issued unqualified audit opinions stating that Bally’s 2001 to 2003 financial statements confirmed with GAAP, and its audit conformed with accepted auditing standards. Full Article

Internal Audit is a service to management. Its functions include examining and evaluating internal control and providing assurance to the management. It is a part of the organisation's system of internal control and its scope includes ALL aspects of internal control, not just financial control.. The scope of internal audit is much wider than statutory/external audit. It should ideally cover all the organisation’s activities. They include: Full Article

The Income Tax (I-T) Department has issued a fresh notice to realty major DLF even as it's appeal against an additional tax liability imposed on it by the I-T Department is being heard. The demand for additional tax payment first came after the Institute of Chartered Accountants of India (ICAI), which sets auditing standards, revised its accounting norms during 2005-06. Full Article

A report prepared by India's apex accounting body that is investigating the role of the auditors in the fraud at Satyam Computer Services Ltd doesn't shed any new light on the subject and, apart from repeating charges made by the Central Bureau of Investigation, India's federal investigative agency, suggests generic measures to improve the audit process in companies. Full Article

The Government is planning to strengthen the National Advisory Committee on Accounting Standards (NACAS), a move that will make the Institute of Chartered Accountants of India (ICAI) report to NACAS. For this, it will hand over the supervisory role of both accounting and auditing standards to NACAS. Full Article

The Government will soon be empowered to swiftly incorporate in the Companies Act any changes in accounting standards through the rules governing the Act. It will not have to go through the long process of amending the Act. Full Article

Objecting to the Maharashtra government’s decision of removing the audit limit for non-CAs government-authoris ed auditors, the accounting regulator Institute of Chartered Accountants of India (ICAI) has urged to restore the audit limit of Rs 1 lakh at the earliest. No audit limit enables the auditors to perform audit of trusts of any size. Full Article

Accounting regulator, Institute of Chartered Accountants of India (ICAI) has asked the private and public-sector banks to hire the services of qualified auditors instead of chartered accountants who render ‘compilation engagement’ services.  In a compilation engagement, a chartered accountant uses his accounting expertise as opposed to the auditing expertise to collect, classify and summarize financial [...] Full Article