In view of the Satyam scandal, software exporter HCL Technologies today said it has appointed KPMG as an independent auditor to review its balance sheet in addition to its statutory auditor Price Waterhouse. Price Waterhouse was the statutory auditor for Satyam Computer Services Ltd.
“We have appointed an additional accounting firm (KPMG) to independently review key balance sheet items,” HCL Technologies chairman and chief strategy officer Shiv Nadar said here after announcing the second quarter results of the company. KPMG has already independently confirmed the treasury investments of the company. “Going forward, we will ask them (KPMG) to review other items of balance sheet,” he added.
HCL Technologies CEO Vineet Nayar said, “We are taking extra precautions this time. There will be twin audits for the cash, cash equals and the receivables which are together close to $1 billion.” The company said that it has faith and respect for Price Waterhouse. Other than Price Waterhouse and KPMG, the company currently works with Ernst & Young as well.
Instead of appointing another extra auditor and thereby increasing the cost for the purpose of gaining cheap popularity, Mr Nadar, to my knowledge must ask himself about the documents which he and his officials have provided to PWC during the time of their audit. He must also think as to whether he tried to influence the auditors for his own sake during the course of their audit.
What PWC did at Satyam is not acceptable in general, but ICAI must practically examine the real difficulty of their members. Auditors today are not watch dogs, they are basically street dogs tamed by the business community who can easily be thrown out if found non-co-operating at any given time.
Alas! my statment is practical & true. Anybody interested may contact me at [email protected]