Auditors need to be vigilant in detecting fin irregularities

The Institute of Chartered Accountants of India (ICAI) said auditors need to be more vigilant in detecting financial irregularities.”Auditors need to be more agile and more vigilant in detecting financial irregularities. A simple disclaimer or a general hands-off attitude will not work any more…,” ICAI”s President, Amarjit Chopra, said while addressing the 25th Regional Conference organised by Western India Regional Council of ICAI here.

“Implying financial discipline is sacrosanct in the fast changing global and financial markets,” he said, adding the government should rethink on the compulsory rotation of auditors.

“The rotation should be mandatory for only the top 200 to 300 companies,” he said, adding, “the small and medium-sized financial practitioners will upgrade themselves and the bigger players will play a mentoring role.”

Commenting on recent incidents of company auditors being questioned for their role in incorrect reporting of the financials, Chopra suggested a greater scrutiny on the role of company secretaries, especially with regard to raising capital.

“The company secretaries should play a pivotal role, especially with regard to raising capital,” he said.