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DAILY NEWS ANALYSIS from THE HINDU September 2017 By Jatin Verma Educator Unacademy
Business Page 13: Global auditors may face tighter scrutiny. . Global auditing firms may come under greater scrutiny for any wrong-doing as regulators mull ways to make them more accountable, with the role of such auditors- especially the Big Four - PwC, Deloitte, Ernst and Young and KPMG are generally referred to as the Big Four - coming under the lens in various corporate misdoings Prime Minister has also talked of the need for Indian audit firms growing to join the ranks of global giants. PM's exhortation Lets have Big 8-Knowledge Process Outsourcing:The move is expected to give a fillip to Indian audit firms and designed to fill the gaps the big four have allegedly misused, including with the help of their huge network and financial muscles. . A big area of concern pertains to the big guns seeking to wash of their hands whenever their names crop up in any accounting wrong-doing while their delaying tactics in the name of jurisdiction have also been noticed. They generally delay probe by appeals and jurisdiction related challenges at various forums and once there is a substantial time lapse, they tend to settle the probe by arguing the time-bar clauses. While the existing legal framework provides for stringent provisions for domestic auditing firms, there is no specific system in place when it comes to overseas audit firms.
ry is already examining the recommendations of the 3-member expert panel headed by Ashok Chawla on various issues related to audit firms amid concerns over certain practices circumventing regulations The Institute of Chartered Accountants of India (ICAI) regulates the profession of chartered accountants and mostly these people act as auditors. There have been various instances where the role of global auditing firms, including PricewaterhouseCoopers (PwC), was in the regulatory crosshairs for alleged lapses. Markets regulator Sebi has been probing the role of PwC for alleged negligence and lapses in a nearly decade-old corporate fraud case involving Satyam Computer Services Corporate affairs ministry as well as regulators, including Sebi, are looking at the possibility of having stricter norms for overseas audit companies operating in the country A step in the series: Govt's Drive against Black Money- [l] Demonetisation [ii] Cancellation of Registration of Shell Companies in July 2017 [ii] In July, PM asked ICAl why action has been taken against only 25 of them for irregularities, while over 1,400 cases are pending for many years
Hindu Dated July 4,2017: The Citizens Whistle Blowers Forum said on July 4, 207 that PwC firm had been found guilty by parliamentary committees, various investigation agencies and courts, but its "government business is growing by leaps and bounds" Mr Prashant Bhushan said the government appointed PwC as its consultant on black money investigations through the Income Tax Department. This despite the firm found guilty by a Joint Parliamentary Committee (PC), even RBI, CBl and other agencies PwC has also been involved in fudging its own accounts and filing false reports for companies such as Satyam and Global Trust Bank and Vijay Mallya's firms. Takeaway Need for better coordination between Govt agencies.