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Friday, Jan 09, 2009
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Auditing Corporate - Corporate Governance Web Extras - Software ICAI to fast track auditor role enquiry K.R. Srivats New Delhi, Jan. 8 Armed with a revamped disciplinary mechanism, the Institute of Chartered Accountants of India has said that it would fast track its probe on the role of statutory auditor Price Waterhouse in the Satyam Computer Services case. It was now confident of completing the process within six months of all hearing. This confidence stems from the changed legal system for disciplinary mechanism of its members, brought about through amendments to the Chartered Accountants Act in November 2006. The ICAI has already shot off letter to Satyam seeking information on financial statements for the last three years. Asserting that the institute’s action in the Satyam case would not go the Global Trust Bank (GTB) way, where the judicial proceedings are yet to be concluded and pending for more than three years, the ICAI President, Mr Ved Jain, told Business Line that the new disciplinary mechanism had shortened the entire process. “Earlier, there was a long route I was supposed to follow as part of the disciplinary mechanism. “Now, the route has been shortened and new disciplinary mechanism is in place after November 17, 2006. The Satyam case will come under the new mechanism”, Mr Jain said. On how the new disciplinary mechanism had shortened the whole process, a ICAI council member said that there was now no need for the central council to give its nod for proceeding against a member. “Now complaints can be processed by director of discipline instead of going to central council. Earlier the time taken by council to decide on whether a member was prima facie guilty or not was 6-7 months or even a year. After the 2006 amendments, the complaints can be processed on a day-to-day basis without having to wait for council approval”, sources said. Meanwhile, Price Waterhouse said on Thursday that it had conducted its audits of Satyam Computer Services in accordance with applicable auditing standards and were supported by appropriate audit evidence. ICAI President also said that erstwhile Satyam Chairman Mr Raju’s letter does not appear to convey the whole truth. “My perception is that there can be much more and beyond this. As an accountant, I believe that in an organisation like Satyam this (financial irregularities) cannot be handiwork of one person—Chairman”. He noted that proceedings against the concerned Price Waterhouse partner, as statutory auditor of GTB, would still be goverened by the earlier mechanism as the case was brought to the council before November 17, 2006. Price Waterhouse was the statutory auditor of failed GTB, which was amalgamated with Oriental Bank of Commerce at the instance of Reserve Bank of India (RBI). Mr Jain pointed out that there was a specific provision in the 2006 amendment law that required all pending case before the council as on Nov 17 , 2006 to be governed by the old mechanism (Sec 21A). Price Waterhouse hides behind client confidentiality Simple manipulation of revenues & earnings Auditors role: More to it than meets the eye More Stories on : Auditing | Corporate Governance | Software | Economic Offences
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