Thrissurer (Ker), Apr 12 (PTI) Making a strong plea to entrust the audit of Indian corporate with Indian Accounting firms, the Indian Institute of Chartered Accountants of India (ICAI) President G Ramaswamy, said this would help prevent massive frauds. It is time to entrust the audit of Indian corporates with the Indian Accountants firms, Ramaswamy told reporters here last night.
This would prevent “deficient audits and financial statements of companies enabling massive accounting fraud to go undetected for several years” as in the Satyam case, he said.
On the delay of taking action against chartered accountants registered with ICAI, who audited the Satyam Computer service, Ramaswamy said the US securities and Exchange Commission has slapped USD 17.5 million fine on Satyam, PW and Lovelock and Lewis.
Stressing on the need for confering more powers to ICAI to avert large scale corporate scandals in future, he said a special disciplinary committee has been constituted this year exclusively for dealing with the Satyam case and it would complete the hearing on a fast track mode.
Remarkable progress has been made in the cases, where the court has not stayed the proceedings, he said.
Ramaswamy said certain changes in the disciplinary mechanism of the ICAI are on the anvil to award appropriate punishment to erring members of the institute.
Companies should be required to choose Auditors from a panel prepared by MCA much in the lines of bank audits and the fees can also be fixed based on turnover. It would ensure greater transparency and ensure better quality of audits in all the corporates. Till such time corporates themselves appoint the auditors the frauds will continue to happen
I am a firm believer that our Institute has a good mechanism to detect the errant auditors and punish them as and when need be/ bought to the notice of the institute.
I have all faith with the Institute Mechanism. During my long standing in profession since 1970 as a practitioner as a chartered Accountant I personally believe to be honest in profession and advise all categories of Clients to take care of all regulatory requirements so that their financial statements are free of material misstatements and as per the guide lines and /or as per the regulatory requirements and to see all the stake holders are protected. For this our Institute are tring hard to update our members by way of continuing education programme and various sites suggested to go though by the members such as Knowledge Portal of ICAI, Legal Updates, Tax Guru, RBI websites , entities websites , ministries websites so on and so forth.I personally feel it is the duty of auditors to make them updates and perform their responsibilities to All. In my carrier right from my articled ship since 1964-65 when this system mechanism were not available but we perform our responsibility as per the minimum norms requirements resulting which i never run after money but some how i manage my family and inmates and never defaulted to pay my share of money to various taxing authorities as per my earning and attended various CPE Programmes Hosted by ICAI and of its Chapters as per my requirements to discharge my obligation to my client.My clients does not have any power to detect me to say that their financial statements are to be signed as per their wishes but as per the Laws in which they are passing through. No matter what i will get as my professional remuneration. I always proud that i am a chatered accountant under the banner of THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA.
All our past presidents including the present president CA.G.Ramaswamy always advised to our members try to be honest, perform your duties with well defined integrity and earn money honestly. More money damage the carrier. GOD has given every thing to everyone to leave in to their family and with ALL.
Our President correctly said on several occasions that we are the gate keeper of all financial sectors. I have had the opportunity to hear his bold talks to one of our past president to relax the CPE Hours those who attained 70 years and above , but CA. G.Ramaswamy said in a open forum that no you will have to abide by the terms of CPE Calender each year.You can Attained Rotary/ lions clubs /elite clubs programs regularly by paying your heard earned money but why you talking about to relaxing the CPE hours. which is the avenue to earn money with dignity.During my long standing in profession i have had the opportunity to meet several Past presidents ( few of them left us ) they always advise to learn which has no substitute. Once our beloved past president Late Niriaelwalla said me ” podder what you did at your leisure time i said sir reading books and periodicals ” he advised me at his fag end of life as like as ” what ever you read try to keep records in a diary date wise topic wise it will hardly took 1 hour daily. since then i am trying to keep records in a diary if not in a bound work sheets.Once Late CA.M.C.Bhandari ( past president said me “Podder , do not depend with typewriter for typing make it and use pen and pencil write letters to me when you need to comunicate with me ” no matter spelling mistakes are there , I will get your points.if you do not have any work go on reading the index of our CA journal and make a note in a bound book and /or sheets.It is the advise of all our respected Presidents. THEY ARE TRING HARD AS PER THEIR CAPABILITIES, ABILITIES TO ADVISE TO OF OUR RESPECTED MEMBERS TO DISCHARGE THEIR PROFESSIONAL OBLIGATIONS FOR THE STAKE HOLDERS.Recently concluded/ in process Bank Audit our institute tried hard to up date their members to discharge their obligations to ALL. but many of members are casually taken this advise and did and signed the Banks financial-statements by visiting branches with in a day or two signed sealed and delivered raise bill take money against bills. spent money for their own well fare. Mistakes are bound to be there , they never care too. Then what our Institute will do ? They must one day catch hold by the Institute. but not now, time will tell.
CA.Subash Chandra Podder
Membership no F12073 (of 1970)
Moblie 09433008778
14/4/2011.
There should be Concurrent Audit of all transactions periodically depending upon the size of the company say fortnightly, Monthly or quarterly.The country has ample C.A’s to carry out this job but unfortunately they have not been appointed. 2G scam, commonwealth games scams, DGCA scam,Money laundering scam of Hassan Ali could have been averted.