News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« News Headlines »
 How to claim and track income tax refund
 In relief to tax-payers, 2 more ITR forms will be pre-filled from FY21
 Income Tax Return 2019: How to get your refund amount in case of mismatch in bank account details?
 10 Days Left To File Your Income Tax Return And Avoid Penalty
 Income Tax filing: Here's what'll happen if you miss ITR filing last date
 5 common mistakes in filing income tax return which may cost you dearly ITR Filing 2019
 How to verify the validity of Form 16 ITR Filing
 5 incomes you must not miss to report in your Income Tax Return for AY 2019-20
 How to File Income Tax Returns aka ITR Online in India
 Will a new direct tax law push up compliance?
 How To Verify Income Tax Return (ITR) Without Login To E-Filing Account

Auditors may have to pay investors for fraud
September, 13th 2010

The new Companies Bill could contain a provision that will make auditors compensate retail investors in cases of corporate fraud, a measure aimed at bringing in more accountability into audit profession.

In a representation made before the parliamentary standing committee on finance, the ministry of corporate affairs has suggested several such measures to restore investors confidence, affected by the alleged involvement of auditors in the Satyam scam.

The final version of the bill could also contain a provision empowering regulators to initiate civil and criminal action against auditors/ audit firms, if they are found to be a part of a fraud committed by any company.

The government is also looking to set up an independent body to oversee the quality of audit in the country. The body, being conceived on the lines of the Public Company Accounting Oversight Board in the US, will cut into the authority of the Institute of Chartered Accountants of India (ICAI).

The ICAI has opposed the creation of this new body, which is seen as the governments lack of faith in ICAI.

While the idea behind the proposal is to raise the accountability of auditors and imbibe greater reliability in corporate accounts, the move is likely to be supplemented with greater authority to auditors to verify financial details provided by companies.

A suggestion in this regard has been made by the parliamentary standing committee, which seeks to give auditors access to financial records of the subsidiaries of companies, which are outside India, and financial data on their transactions The idea is to draw a balance between accountability and authority. Auditors will be given greater authority to do their work, said an official in the ministry of corporate affairs.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions