ICAI Quality Review Board chief Memani quits

NEW DELHI: In a sudden development amid Satyam fiasco, K N Memani, chairman of government-appointed Quality Review Board (QRB) for chartered
accountants, has resigned from his post.

Memani, who headed an 11-member high-powered committee, consisting of representatives from CAG, RBI, corporate affairs ministry and ICAI Council, tendered his resignation about a week back to corporate affairs minister Prem Chand Gupta.

When contacted by TOI, he confirmed that he has decided to relinquish the position. "I can only say that I have submitted my resignation," Memani said, refusing to give any further details.

Memani was appointed to head the QRB in June 2007 along with ten other members, and his sudden resignation comes at a time when questions are being raised over the quality of auditing processes in India, following the Satyam fiasco, where the role of external auditor Pricewaterhouse has been questioned.

Sources said that Memani decided to quit as the QRB failed to get adequate support from ICAI regarding its functioning. Through an amendement, government paved the way to form three independent QRBs for bodies of chartered accountants (ICAI), company secretaries (ICSI) and cost and work accountants (ICWAI). The QRBs are supposed to get funding and other infrastructural support from respective institutes like the ICAI, ICSI, and ICWAI. "Memani resigned as he felt that the ICAI was not providing much support to the running of the QRB. He felt uncomfortable in continuing with the board in the absence of required support," sources said.

However, ICAI president Ved Jain denied that the institute was slack in providing support. "There was complete support to the QRB from our side," he said.

Some sources also linked Memani's resignation, believed to have been sent to Gupta on January 12, to the Satyam fiasco. It is learnt that despite more than 18 months of its formation, the Memani-led QRB failed to do much work to suggest ways to strengthen auditing.