Violation of Accounting Principles
The Government is aware that violation of accounting principles and financial irregularities are being carried out by various companies and their audit firms. During the last three years, 316 companies and 73 audit firms were found guilty of violation of accounting principles and other financial irregularities for non-compliance of disclosure norms. Prosecutions have been filed against such companies and audit firms, under section 211 and section 227 read with section 233 respectively of the Companies Act, 1956 for such violations.
This information was given by Minister of State for Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Lok Sabha today.
ICAI Committee
The Institute of Charted Accounts of India (ICAI) has not constituted any high powered committee to look into the entire gamut of financial reporting etc.
Out of the 171 Indian Chartered Accountant (CA) Firms who have reported to the High Powered Committee (HPC) constituted by the Council of the Institute of Chartered Accountants of India (ICAI) specifically to prepare a report on operation of Multinational Accounting Firms in India, 36 have submitted only partial information. The Report of the HPC does not mention the names of the CA firms who have not supplied complete information to ICAI.
The Report of the HPC has been submitted to the Council of ICAI which is yet to communicate its decision thereon to the Government.
This information was given by Minister of State for Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Lok Sabha today.
The accounting standards and requirements are so voluminious,complex and confusing that any body will commit yhe default.Let the accounts be prepared by the persons who demand them to be prepared.Let the matters be simple and useful and easy to understand