The central council of accounting regulator Institute of Chartered Accountants of India (ICAI) met on March 13 to consider a second report submitted by its high power committee on Satyam. The committee, set up in the aftermath of Satyam audit failure, has come down heavily on the functioning of Big 4 firms – Deloitte, PwC, KPMG and Ernst and Young.
The report alleges that KPMG and Ernst and Young are indulging in surrogate practice by tying up with Indian affiliates. “KPMG and Ernst and Young have resorted to entering into tie-ups with Indian CA firms and are indulging in surrogate practice. This has created unhealthy competition between the multinational firms too,” observes the committee.
The report highlights the point that foreign accounting firms have opened multiple firms in India under similar names. Deloitte has seven firms registered under the name Deloitte Haskins & Sells, PwC has seven firms registered under the name Price Waterhouse while KPMG, which operated though its Indian affiliate firm BSR, has six firms registered under the name BSR. Ernst and Young has 3 firms registered with ICAI under the name of its Indian network firm S R Batliboi.
Surprisingly, the committee blames its officers for granting multiple firm approvals. “In respect of multiple firms, which have come up after 1st June 1988, the office has uniformly erred in treating the new names as identical names and not similar or nearly similar names.”
Under CA regulations, approval cannot be granted to a firm name which is similar to an already existing firm name. The committee has hence recommended to the council that “any approvals granted for multiple firm name should be withdrawn……”
The report states that the Indian network firms refused to part with a copy of their agreement with Big 4, which had been sought by ICAI. It also states that some of these firms, through their multinational brand names, have been misrepresenting to the public about their ‘competence’ and ’standards’.
The central council has appointed a five-member committee, which will submit its final recommendations on the findings within a month. The council is likely to take some decision on these controversial issues in its May meeting, according to highly placed ICAI sources.
For now, it is an open war between ICAI and the Big 4 accounting firms….
Bank branch audit panel has been hosted on 1/11/2010 by the PDC OF ICAI, after careful scrutiny – as far as possible for the year 2010-2011.most of the chartered accountants are very happy by seeing their names has been included there in . Many of my professional friends called up me for their joyous, i advised please go on reading institute bank audit book, past ca journal , specially March 2010,2009,2008, recap what you did in last audit, try to find out the mistakes you did, prepare a list, again prepare a revised audit program based on the circulars issued by the RBI. ,ICAI,TAX GURU, TMI REGIONAL COUNCILS AND WEB-SITES at least 3 hrs in a week so that you could be able to complete your process by end of January2011. And after getting the assignment, prepare revised audit program. after due consideration of the terms of the appointment letter . prepare check list what to do , do not leave matters only to your staff , as they may not be able to take decisions on the spot, hence sit over there ( bank branch ) before the end of close of the year ie. 01/04/2011.
Who cares for this reading and making program and see different sites of the latest updates, they are just like an ATM. CARD . go to the branch flash their card as CA. TO ask the branch where are the returns, profit and loss account, balance sheets, make signatures as far as possible. finish their job, return by air , raise bill, every thing will be completed with in 2/3 days.don’t care for filling of document . ACT JUST LIKE AN ATM CARD.
WELL DONE MR.CA. AFTER EFFECT gali lagao to the institute , Reserve bank of India , concerne bank for getting delayed appointment and to be signed by 5th to 8 th. Impossible. extra time is must not for the audit but for the traveling and other expences. as fees are fixed.
if they fail to get the assignment “aur galli maro institute ko, RESEVE BANK KO , BANK WALLA KO ”
TRY TO BE HONEST , PERFORM THE DUTY ENTRUSTED TO YOU WITH REASONABLE CARE , SEE THE DOCUMENT WHERE YOU ARE SIGNING , PRESERVE IT , CARRY THOSE IN YOUR AUDIT FILE AS PER GUIDELINES ISSUED BY THE INSTITUTE, RESERVE BANK , AND ALL OTHER ARTICLES PUBLISHED IN THE CA JOURNAL. SEE THE D EFFERENT WEB SITES. BE HAPPY . THEN RAISE BILL.
SD. CA SUBHASH CHANDRA PODDER
23/11/2010
Forget to blame of our institute.Please go on reading at least our CA JOURNAL , minutely at least 20 hours in a month , a ca or non ca must be benefited. OUR JOURNAL .JULY 2010, ( SPECIAL ISSUE FOR CA DAY ) IS VERY MUCH INFORMATIVE, KNOWLEDGE ENHANCING. GO ON READING CA JOURNAL FROM MARCH,10, APRIL ,10, MAY, JUNE ,JULY ,AUGUST 2010 GET MORE INFORMATION . BESIDES JOURNAL SEE THE INSTITUTE AND REGIONAL COUNCILS SITE . TAX GURU , LEGAL UPDATE. IIM SITES ON REGULAR BASIS ONE MUST UPDATE THEIR KNOWLEDGE. FORGET WHAT OTHERS ARE DOING. BE HONEST ADVISE OTHERS TO BE HONEST.
The Chartered Accountant journal is very informative even a non accountant can get knowledge if he/ she read the articled published in the journal. Can you tell me how many chartered accountants are really gone through this journal?
Every article selected by the Editorial Board of the journal is very much informative and for the benefit of members either in profession or in service. on 22/3/2010 our vice president commented that he served his article clerk ship during last three years ( served as a central council member ) now he has been elected /selected as the vice -president ( become a charted accountant ) to serve for the members . He seek advice/ suggestions from the members. and assured us that the committee will do their best for the professions. Really they are tring their best to serve for the profession for builder of the Nation. invited articled to be published in the journal. Tell me how many of us including myself are ready to send articles to be published in the journal with a small honorarium ? THOSE WHO ARE CRITICIZING is good. we can change our mind. but don’t say that they are agent of the govt. no not at all.if you have ambition to fight our next election you have every right to be a candidate, but cant win !
In the early morning pry to GOD GIVE me hardship today so that i can fight for hardship. This is the real Challenge of life.
CA SUBHASH CHANDRA PODDER
012073 OF 1970
The Chartered Accountant journal is very informative even a non accountant can get knowledge if he/ she read the articled published in the journal. Can you tell me how many chartered accountants are really gone through this journal?
Every article selected by the Editorial Board of the journal is very much informative and for the benefit of members either in profession or in service. on 22/3/2010 our vice president commented that he served his article clerk ship during last three years ( served as a central council member ) now he has been elected /selected as the vice -president ( become a charted accountant ) to serve for the members . He seek advice/ suggestions for the members. and assured us that the committee will do their best for the professions. Really they are tring their best to serve for the profession for builder of the Nation. invited articled to be published in the journal. Tell me how many of us including myself are ready to send articles to be published in the journal with a small honorarium ? THOSE WHO ARE CRITICIZING is good. we can change our mind. but don’t say that they are agent of the govt. no not at all.if you have ambition to fight our next election you have every right to be a candidate, but cant win !
In the early morning pry to GOD GIVE me hardship today so that i can fight for hardship. This is the real Challenge of life.
CA SUBHASH CHANDRA PODDER
012073 OF 1970
EVERY ONE HAS THE RIGHT FOR FREEDOM OF EXPRESSIONS. WHAT I SAID IN MY EARLIER COMMENT OF THIS DATE MEMBERS CAN HAVE RIGHT FOR EMPANELED FOR AUDIT /ATTESTATION WORKS.EMPLACEMENT DOES NOT CONSTITUTE /CONFIRM THAT THE FIRM SHOULD GET AUDIT. THERE MANY THINGS TO SEE. SUCH AS NO OF PARTNERS /STAFF WORK EXPERIENCES ETC. BY NOT GETTING AN AUDIT DOES NOT MEAN THAT THE PART / FIRM SHOULD HAVE TO PAY BRIBE.
TRY TO FULFILL ALL THE CONDITION , THE INSTITUTE ONLY REFEREED THE FIRMS NAMES TO THE APPOINTING AUTHORITY. DO YOU LIKE TO SAY THE INSTITUTE SHOULD PAY BRIBE ON BEHALF OF YOU ?
CA.SUBHASH CHANDRA PODDER
KOLKATA .700028
10/5/2010.
I BECAME AN ASSOCIATE MEMBER OF THE INSTITUTE OF CHARTERED ACCOUNTANT OF INDIA, AND FELLOW MEMBER IN THE YEAR 1971 AND 1976 RESPECTIVELY AND IN CONTINUOUS IN PRACTICE UP TO THIS DATE ( 10/05/2010 ) BEFORE THAT I SERVED AS AN ARTICLED CLERK FOR FOUR YEARS , HENCE I AM ASSOCIATED WITH THIS PREMIER INSTITUTE FOR MORE THAN 46 YEARS.
BEING AN ACTIVE MEMBER AT MY PRESENT AGE 69YARS.MY EXPERIENCE WITH MY INSTITUTE IS , THEY ARE ALWAYS TAKING INITIATION TO EDUCATE MEMBERS AND OF THE STUDENTS . MORE RECENTLY IN EVERY DISTRICTS THERE IS EITHER REGIONAL OFFICE, CHAPTERS. DECENTRALIZED OFFICES.OR OTHERWISE. EDUCTAED MENBERS BY ORGANISHING SEMINARS, CONFERENCES, WORKSHOPS ETC.BESIDES THESE TIMELY PUBLICATIONS OF MANDATORY BOOKS AND OF THE CA JOURNAL.NEWS LETTERS AND OTHER LITERATURE (S).ANY MEMBER OF THE INSTITUTE CAN ALSO VIEW THE OTHER SITES AS LIKE AS TAX GURU, LEGAL UPDATES.ETC.CAN YOU TELL ME HOW MANY ARE VISITING THOSE SITES . CA JOURNAL ETC. THEY ARE RUNNING AFTER MONEY WITH OUT CONSULTING BOOKS AND MAKE THEM UPDATED. AS SAID THAT I AM IN PROFESSION SINCE 46 YEARS MANY OF US TRYING THE INSTITUTE AS A SPECTATORS FOR MISDEED DONE BY THE AUDIT FIRM.NO SIR AS SOON AS THE INSTITUTE GET INFORMATION THEY ALWAYS TRY TO TAKE PROPER INITIATION/ ACTION AGAINST THEIR MEMBERS AND FIRMS AS FAR AS PRACTICABLE.BE HONEST ADVISE OTHER MENBERS TO HONEST. REGARDING BANK BRANCH STATUTORY AUDIT CAN YOU TELL ME HOW MANY OF OUR MENBERS HAVE GONE THOUGH THE GUIDELINES FRAMED BY THE R.BI, INSTITUTE . EVEN OUR MENBERS HAVE NO TIME TO GO THROUGH THE APPOINTMENT LETTER CONTAINING THE DETAILS TO BE SEEN AND VERIFIED FOR ATTESTATION WORKS.THEY ARE VISITING THE BRANCHES FOR ONE /TWO DAYS .SIGNED SEALED , DELIVERED , RAISE BILL INCLUDING INFLATED TA AND DA. BILL. WELL DONE. YOU ARE A GOOD CA. THEY DO NOT HAVE ANY PLANNING,SYSTEM OF RECORDING, SYSTEM OF VERIFICATIONS. ETC. DON’T CARE PEER REVIEW. CAN YOU TELL ME HOW MANY MEMBERS COULD BE SEEN IN THE SEMINAR AFTER LUNCH IS OVER? THEN WHAT IS THE FAULT OF THE INSTITUTE WHEN THEY TRIED ALL OVER INDIA TO MAKE THE MEMBERS UPDATED BY ORGANIZING SEMINAR ,WORKSHOPS/ TELE CONFERENCES ETC. THIS YEAR THEY OPEN A SPECIAL SITE FOR THE MEMBERS UP TO 10/04/2010 FOR HELP FOR ANY PROBLEM FACED BY THOSE AUDITORS. CAN YOU TELL ME HOW MANY HAVE AVAILED THOSE SERVICES ?
MEF FOR 2010-2011 OPENED FROM 01/05/2010 ALREADY MANY MEMBERS /FIRMS EMPANELED . BUT TILL THIS DATE THE FEES FOR THE WORK DONE FOR 2009-2010 IS YET TO BE RECEIVE BY THOSE FIRM.
HOW MANY MEMBERS WANTED TO REPLY THE QUERIES RAISED BY THE SITES?
EVEN REPLY ANY PROBLEMS IN THE ARTICLED PUBLISHED IN THE JOURNAL/ ON NEWS LETTERS PUBLISHED FROM THE DIFFERENT REGIONAL COUNCILS OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA.? /
Firstly what is “surrogate practice”? I dont think these words have been defined by ICAI so far. The contents of the report should be made public so that other members can understand what is surrogate practice and stop such a practice if they are pursuing it. If necessary the relevant Code of Ethics should be ammended to specifically prohibit such practice.
CA. James Antony’s, Sathya’s and the second comment of CA.SUBHASHCHANDRA PODDER are eye-openers, as much as the other comments are. Really, the affairs of the ICAI also desrve hihj-level enquiry, at least those of the past decade until the taking over of Mr. Chopra. Without the tacit support and connivance of the ICAI as the apex body constituted under a Parliamentary enactment, could the BIG FOUR/foreign firms really start operating openly in India-albeit through surrogate entities ? The support of the Govt. and other constitutional bodies apart, when an independent authority constituted to regulate the practice and conduct of CAs as well as to protect their interests itself is remiss in its responsibilities, what can the aspiring CAs learn/do? Without real and effective contacts inter alia in Delhi, it is impossible to build up practice for a fresh/young CA operating on his/her own, unless one is ready to become a mere agent for corrupt officers/bureaucrats. The Supreme Court had to intervene in the matter of the election expenses of contestants in University Students’ Unions-will someone demand a similar action in respect of the elections for the ICAI over the last 5-10 years. And will some authority inquire and enlighten the public/govt. on the career graph of the Past Presidents from 1995 to 2010? Why does even CAG and RBI not honor the rates of fees prescribed by the ICAI for “awarding” audits of PSUs/Banks to firms? What ultimately happens to the Branch Audit Reports in the case of Banks? Do the CAs get reasonable time to real and meaningful audit of the accounts of the PSUs and Banks? Are the time limits enjoyed by the Commercial and Revenue Audit Parties of the CAG are on par with those allowed to CA firms for conducting/completing audits of PSUs/Banks? Do the Banks equally care for the “petty” CAs as regards their reports?
The truth is that, by dint of the conduct of the apex body itself over the years, the profession has lost credibility and dignity. Audit Reports are salable-as much as the Auditors are. Otherwise, is there any developed country where CA firms are required to “bid” for award of jobs in auction, as is the case of the contractors and the L-1 is selected and, that too, after bargaining and fixing the “share” of the bill signing authority? Has the ICAI ever objected to the practice of calling for bids from CA firms and fixation of fees at rates several times lesser than what are prescribed by itself?
Let the community of CAs in India ponder over these filthy practices perpetrated by their own body-however “unrepresentative” it is as a tradition of the colonial past. The faithful get rewarded both monetarily and otherwise-those who do not fall in line, wait outside the offices of junior most ITOs, SOs in Co. Affars/ROC offices for days and months watching freely the performance of “Paisa Bolta Hai”.
Amen !!
IN OUR COUNTRY WHERE THE BANKING SYSTEMS AND NORMS FIXED BY RESERVE BANK OF INDIA ARE BEING VIOLATED BY THE BANK MANAGEMENT AS PER REPORTS AVAILABLE AT THE PRINT MEDIA , HOW THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA , THE 2ND LARGEST BODY IN THE GLOBE AS ACCOUNTING REGULATORY IS WHITE WASH EVERY THING OVER THE NIGHT.THEY HAVE TAKEN SUFFICIENT CARE OF THEIR MEMBERS WHO ARE HONEST AND ABIDE BY ALL THOSE SYSTEMS FRAMED BY THE I.C.A.I, EDUCATING MEMBERS AND OF THEIR STUDENTS REGULARLY AS AN PRIMARY LEVEL SCHOOL ,COLLEGES AND UNIVERSITY IN THE METROPOLITAN AND ALSO.. IN VILLAGE LEVEL IF MORE THINGS ARE COME UP IT WILL BE EASY TO HANDLE WITH CARE , NO MATTER TIME IS ROLLING. IT IS THE NATURAL COURSE DAY 19/3/2010 WILL COME AFTER 18/3/2010, THAT IS STEP BY STEP I BY I MAKES 11 STEPS , 1 BY 2 , 4. AND 5 CANT MAKE A TEAM 11. WAIT AND SEE ,
CA SUBHASH CHANDRA PODDER ( 012073
KOKATA 18/03/2010
I BELIEVE THAT OUR INSTITUTE WILL TAKE APPROPRIATE STEPS AGAINST THOSE FIRMS WHO ARE NOT COMPLIED WITH THE ETHICS ,CODE OF CONDUCTS, VIOLATE THE ACCOUNTING NORMS AND PRINCIPAL IN PREPARATION AND ATTEST IONS WORK OF THE FINANCIAL STATEMENTS CERTIFIED BY THE ANY CHARTERED ACCOUNTANT FIRM UNDER THE UMBRELLA OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA.
THEY HAVE SUCH INFRASTRUCTURES TO HANDLE WITH CARE .
CA SUBHASH CHANDRA PODDER
KOLKATA 18/03/2010
The real question, in the context of the comments of CA Surendra Kumar Rakhecha, is whether the Institute can legally take action against the “Foreign Firms” as such, and not merely against their surrogate Indian arms whose partners are all Indian citizens.
But, it is true, that, with the new President at the helm of affairs of the Institute, some progress will be seen on this aspect, especially since the BIG-4 enjoy the patronage of even the CAG.
DSQ, Satyam and many more. Still the ICAI takes it own time. I remember Mr.Gurumurthy’s initiative in this regard ( Chartered Accountants Action Committee for level playing field ) . No idea What happened after that.
We will have to see who has the last laugh on this.
It is very sad that our ICAI is behaving just like any other govt department. When I applied for a name, it was rejected pointing out the similarity with another name, 2 years ago. (I asked for “XXX Associates” and my application was rejected because there is another (XXX & Associates” in another part of the country). Now, if you have high level contacts, you will get whatever name you want ! So pity!
I believe that suitable action will be taken by the ICAI council soon.
In precious 3 years the Institute has taken disciplinary actions against 123 members.
Whatever actions have been taken so far against the members by ICAI council in the past, the most of them have been confirmed by the Hon’ble High Courts.