ICAI preparing final report in Satyam case
Hyderabad: A high-level disciplinary committee of the Institute of Chartered Accountants of India (ICAI) will soon visit Hyderabad to study issues relating to the corporate governance, non-adherence to the accounting practises, role of independent directors and other stakeholders in the Satyam Computers case, according to ICAI
president Uttam Prakash Agarwal.
ICAI, the regulatory body of chartered accountants in India, was now preparing its final report on the Satyam Computers case after having submitted its preliminary report to the Union Ministry of Corporate Affairs, Agarwal told reporters on the sidelines of the 41st regional conference Jnana Yagna of the ICAI here on Saturday.
The Satyam case investigation is a priority for us. ''It will be completed before February next year, when my term as the president ends'', Agarwal added.
The report by the disciplinary committee would also be submitted to the Ministry of Corporate Affairs for necessary action against the auditors.
The ICAI president refused to reveal what action would be recommended against the erring chartered accountants who
audited the Satyam accounts.
Agarwal said S Gopalakrishnan, one of the partners and
auditors of PriceWaterhouse who signed the financial statement
of the scam-hit Satyam Computers, has been stripped of all
non-standing committee posts two weeks ago.
Gopalakrishnan would, however, continue as the ICAI
council member, Agarwal said.
ICAI has now asked all its members to look for external
evidence before certifying the accounting statements of
companies to ensure that similar incidents do not recur.
ICAI is also trying to bring about an awareness among
its members on International Financial Reporting Standards
that would come into effect from April 2011.
Earlier, Andhra Pradesh Chief Minister YS Rajasekhara
Reddy who inaugurated the two-day event said the Satyam case
was a systemic failure and asked the chartered accountants to
be more vigilant in giving certificates to the companies.