The Hindu Business Line : Stiffer norms soon for audit panels

The audit committee rules would ensure that Indian companies do not go the way of some of the large US corporations such as WorldCom, which has uncovered accounting irregularities that have exploded on the face of investors, according to Mr Vinod Dhall, Secretary, DCA.

Addressing a National Accounting Convention organised by the Associated Chambers of Commerce and Industry of India (Assocham), Mr Dhall criticised the Indian corporate sector for some of its accounting as well as corporate practices.

``Our companies are small compared to those in the US. But I still suspect that hidden in many of our companies are similar accounting irregularities that had surfaced abroad. I don't have the confidence to say that the similar kind of irregularities that had happened in the US would not surface in the Indian environment,'' Mr Dhall said.

He held that the rules governing the audit committee would ensure its independence and make them more responsible and effective.

``The audit committees would act as an effective internal body. It should have the capacity to call the management and the CFO and even grill them for deficiencies in the accounts. They can even ask the accounts to be recast to factor in the qualifications made by the auditor and then send the accounts for board approval and shareholders approval,'' Mr Dhall said.

The DCA is also examining the possibility of mandating auditors to directly report the qualifications made by them to the Registrar of Companies (ROCs) upfront and also make the ROCs responsible for taking action on such qualifications.

Send this article to Friends by E-Mail

Stories in this Section
CNBC India keeps options open on deal with Sony

Tetley set to save on interest with Tatas' cash infusion

Wanted: A corporate clown

DCA in talks with SEBI to tighten pref allotment norms

Auditors qualify SPIC accounts

Dabur revamps risk management set-up — PwC appointed single internal auditor

Buoyed by Tata Steel order... — BOC India to set up plant at Jamshedpur

Stiffer norms soon for audit panels

Pawan Hans signs MoU with CHC International

GailTel joins hands with Bharti Telesonic

SILK, Chinese co join hands to make turbines

`Ranbaxy has its eyes firmly set on overseas markets'

Retrospective tax breaks for superannuation funds

Ex-Beatle strikes jarring note for Big Mac

Haldia Petro staring down the debt barrel

Ambani's condition still critical

Sarthak Behuria is new BPCL chief

Now, a forum for India Inc's first families