The Institute of Chartered Accountants of India (ICAI) said on Monday it would reveal to the public the names of audit firms that overlook due diligence while auditing companies. This would act as a deterrent to audit firms from compromising on the quality of audit work as the bad publicity would make it lose its clients.
ICAI president Ved Jain said here that ICAI took the decision at a meeting of its council, which met here for the first time after the Satyam scandal. This means that audit firms can no longer hide behind their corporate veil, but have to pay for the mistakes committed by their individual auditors.
ICAI will also tell capital market regulator SEBI to disallow auditing by any tainted auditor, which ICAI puts in the public domain, from audting listed companies, Mr Jain said here.
