Effective use of technology for in-house audit processes could help prevent accounting fraud in a company, as it will be easier to monitor the flow of data online, says global consultant PricewaterhouseCoopers. A new PwC report, `2010 Internal Audit State of the Productivity of the Profession Survey’, said that about 48 per cent of Indian companies lack skill and knowledge of data tools used in internal audit softwares, while 18 per cent have no access to these tools.
“With a predicted increase in scope and responsibility and heightened focus on risks, it is essential that internal audit functions prioritise focus, employ smarter resourcing and skill models and use technology as an enabler,” PwC India Executive Director Satyavati Berera told PTI.
However, a number of internal auditors in India are not convinced that technology has a measurable benefit, with 38 per cent of the respondents to PwC’s survey unable to calculate the benefit.
Of the companies that saw benefits in the use of information technology, 38 per cent said it provides greater coverage, 28 per cent talked about targeted risk testing, 18 per cent were eyeing efficiency and 17 per cent were keen on the ability for continuous monitoring, the study said.
PwC suggested that companies can initiate a pilot project for a technology—enabled audit methodology or audit lifecycle so that an assessment can be made about the opportunity for technology to enhance and streamline that process.
“It is important for raising the performance bar because this year’s survey results indicate that auditors at present are not convinced that technology has a clear benefit,” PwC said.
The role of internal audit processes hold significance in India in the aftermath of the Rs 10,000 crore accounting scam at Satyam Computer Services that was brought to light in January last year by the IT firm’s founder and the fraud’s perpetrator, B Ramalinga Raju.
The firm’s internal audit team head V S Prabhakar Gupta, was booked by the CBI for being party to the crime – the largest in India’s corporate history.
Its all publicity stunts.Its was just to keep a good financial consultant in limelight.Nobody knows about real truth.
Sir, it appears that the commentators above are referring to the sad episode in which unfortunately a great philanthropist-cum-India-famous taxation expert, viz., Shri SK Tulsian was implicated. Apart from his erudition and vast legal knowledge, he is the only person who has been the only selfless savior of the income tax family for three decades, especially in Calcutta and Bombay, by helping officers in times of need-be it transfers and postings or medical emergencies. In good faith many people do many things and are trapped. It is good to learn from this site that he has been aquitted finally from all charges and back in practice. Truth ultimately prevails.
Sir, Mr. Bidhy is not correct in what he states has happened with the CBI searches in Calcutta relating to an Advocate/CA firm, a VP of the Income Tax Tribunal and some income tax officials. T%he cases have been dropped a long time ago as the authorities have given a clean chit to the main accused, a leading and most respectable tax practitioner of India. He has been regularly appearing before all the statutory authorities for more than 2 years and the CAs who were falsely implicated are also back. In fact, even ICAI has refused to take any action against them. Not only that, the famous authority on tax who became a target of adverse criticism of his own peers in the profession due to his hold over the department, only because of his spotless integrity and erudition, is now on several govt committees as adviser. It is sad that honest ITAT members and IT authorities are being harassed by the public only since they are close to a legal luminary. It is heartening that the CBI has given up its cases. After all, it is unfair to mention this person’s name in the context of the foreign CA firm which is rather a subject of investigations.
Whatever be the public image of PwC and despite its true character, what it says is noyt incorrect. It is rumoured in Kolkata that the code used in the CDs seized by the CBI in the sensational search of the CA and the ITAT member have been ultimately deciphered by the CBI and the names of the beneficiaries of the racket are now available with this premier investigation agencies. It is therefore clear that, only by using technology, the CBI has finally brilliantly succeeded in facing the challenge of the powerful CA and is now on the track of a large number of ITAT and IT top people. It is rumoured that even narco test was performed on one person and he has named a few very powerful persons many of whom have simply gone underground, taking casual leave. If CBI did not take the advantage of technology, this could not have happened. So, CBI must be congratulated and the PwC’s theory cannot be brushed aside.
PWC need not to interfere with functions of ICAI for misleading propaganda.
Oh-howler of the century! Look, from which (horse’s ?) mouth it is coming?