Tightening the noose around the audit companies having arrangements with global firms, the accounting regulator ICAI has sought details of their tie-ups with MNCs to check surrogate practices. The decision to seek tie-up details from CA firms, especially those associated with the Big 4– PWC, Ernst & Young, KPMG and Deloitte–follows a report by an Institute of Chartered Accountants of India (ICAI) committee on the multi-crore Satyam scam.
“The details are required pursuant to a meeting held with the ministry of corporate affairs in regard to the public image about auditor’s role, manner in which surrogate firms hold out to the public, use of international brand name and host of other related issues,” the ICAI said.
Surrogate practices refer to foreign firms carrying out auditing functions in the country through clandestine arrangements with domestic firms.
ICAI announcement in respect of above can be found at the following link:-
The targeted firms are not even bothered about the ICAI or even the CAG who has given open support to these foreign entities all along. They know!
Everyone in the business knows the surrogates of the Big 4. Why unnecessarily asking these questions as there is no action going to take place?
Dear concerned all
i am of the opinion that if the icai is not able to gather the required information it shall declare an incentive and award for those who give such details directly to icai , and the real compensation shall be given to the such informer directly or indirectly by keeping his or her identity critieria etc to its own, so that , the icai , can , collect the much more details with in the stipulated time, other wise it will also a futile exercise , like many other attempts, in the past. Bassed onthe on hand information, the icai , can initiate futher proceedings as well in the days to come . Otherwise, getting the required info is only day dream .