CA;s sell their signature and do nothing

Internal Audit 1739 views 7 replies

 

The fraud perpetuated by Satyam management and authenticated by Chartered Accountants for last so many years not only exposes the truth of corporate governance but also the quality of Certification done by Chartered Accountants on whom Government believes blindly. Only in the last month, team of CA had clearly denied that they had given any report on value to his son’s company called as Maytas and when doubtful integrity of Satyam management was well established and came to light.  Prior to that World Bank had also debarred these companies for eight year for alleged improper financial operation. Inspite of all, regulators like SEBI and Institute of CA’s remained silent spectator only because they all are birds of same feather. As a matter of fact all regulators remains mostly in deep slumber and only when blast like Mumbai blast occurs they are awaken. They will again sleep as soon as the news is forgotten by general mass.
 
It is not astonishing in Indian context. Companies in general are manipulating their balance sheets in their style and as per their whims just by feeding extra fees/bribes to auditors. In banking industry or in insurance industry or in government run departments, everywhere Chartered Accountants are purchased by gifts in cash and kind so that they may certify their books of accounts as per direction and choice of promoters, CEOs and high profile officers.
 
CA certification is so much significant in the eye of IT officials ( who are greater evil force in our country) and the government of India ( which is constituted by money eaters) that every company or every traders having turnover of more than Rs.40.00 lacs in a year has to worship CAs and even his supporting clerks and peons. In majority of the audit certification process, CA’s do not even look into books of record seriously. Only their audit clerks (many of them do not even know the ABC of accounts) go to the office of the department /company/traders who pretend to go through books of accounts and CA simply put his signature and Stamp. I put emphasis because  in most of audit certificates, CA takes money /fees only for his signature and stamp. Audited balance sheets are prepared after payment of large amount of money and only after the concerned company treat the auditors as their most respected guests.
 
Money in our country play vital role in every segment of society in deciding the goodness and badness of any individual or any company. Money has the capacity to make or mar the image of anyone and everyone. Money has the power to turn the table in any department, in any office of the country.
 
Certificates in our country are as such unreliable from quality point of view and hence I never believe in even audit reports of the company. Right from Birth certificate to death certificate, ration card to passport, caste certificate to competence certificate, all can be bought in the office concerned without any linkage with reality. Even ISO certifications, CRISIL ratings, financial ratings all are issued and improved on the basis of money power.
 
Only God can save us from the clutches of mischievous lot of officers, ministers, professionals like CA’s ruling this country.
 
And only those who live in fool’s paradise can believe our rulers, administrators, CA’s and businessmen.
 
Companies like Satyam and Maytas are numerous in all areas of life. We have seen Harshad and Ketan Parikh. We have seen the fate of Chara Ghotala and Stamp scam.
 
 Exceptionally few are however exceptionally good to shoulder the burden of the Nation at large.
 
Danendra Jain
8th January 2009
 
Replies (7)

MAY I KNOW YOUR QUALIFICATION?

Very true. The so called government servants make rules so that they can screw business people and take bribes. The rules are not to protect the individuals and the country but to take bribe when people cannot comply. The politician takes bribe from business men and govt. employees for favours. I feel what the govt. should do is to ensure that the tax is so little for anything and everything and force it to be paid. Instead of making it difficult to comply with laws people should be encouraged to pay the little taxes and eliminate the middlemen, ie IT and ST officials.    

Sunish

Mr. Danendra you are misguided by someone. Every professional is not same. You can not compare them with every professional.

 

Regards 

Debate on the above subject will be a good idea.......

Mr. Danendra, i dont agree on the thing that CA's sell there signatures. Its very wrongly written or blamed. I agree that there may be some of them who do such nasty things but you cant blame the whole fraternity only on account of those handful people.

Danendra,

I can only suggest to you not to point fingers on anyone. Three fingers point back at you and you too are a part of the business fraternity either as an entrepreneur or an employee and this fraternity also includes the who is who in the fraud and scam market. It is true that some greedy CAs may have done something wrong and to ordinary people like me, such firms of professional were regarded in very high esteem. However, this is the greed of very few persons and you do not blame an entire fraternity. How would you like it if people point fingers at entrepreneurs and corporates and generalise them to be evaders and criminals just because quite a number of corporates indulge in it.

Whether it is a professional or an entrepreneur or an employee, these white collar crimes stem from greed. If someone is willing to sponsor my research I am sure if I make a proper analysis of greed, I will not be surprised that it is existent in nearly all the corporates that are in existence. A negligible number of corporates are organised for any adventure without profit and a vast majority are organised for profit and demonstrate a high greed perception index. On the contrary if you analyse the small businessmen, most of the professionals (doctors, lawyers and CAs), a large percentage is not greedy and living an ordinary existence. It is a small percentage that are greedy and super rich. On one side you have corporates and everyone else on the other. As I said earlier, all these frauds and scams stem from greed, you can now tell where this greed originates from. Is it from where the greed perception index is extremely high (corporates) or where it is negligible (rest of the trade and professions).

Truth is always bitter...and Mr. Jain has said the perfectt truth above...no doubt and God too will be ashamed of knowing all this tricks of man to fool other man and thus man foooling himself of manupulating his dirth into his own karma


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