SATYAM SCAM...what action ICAI will take?

Others 1109 views 4 replies

CA CS Akashdeep Singh

Practicing CA

1394 Points Joined June 2008

ICAI should make strict rules and regulations for big CA firms (basically Big 4) because most of the big Indian companies get audited their accounts from big 4. I am not agree with comment given by Mr. Ved Jain:

"Jain added there is nothing like debarment with respect to PriceWaterhouse Coopers as it is not a firm registered in India. He said, "If people are found guilty then their names would be removed as members of the Institute for a specific period of time. There is also now a provision for financial penalties that can be levied on audit firms. This is as per the new CA Act. As you can see, even the Company’s Bill had proposed penalizing auditors in case they are found negligent."

whey Mr. jain want to give relief to PWC?

Replies (4)

CA. Rajeev Aggarwal

Chartered Accountant

3424 Points Joined October 2008

In my opinion, if chairman of a compnay wants to hide somethins, even CAs can not check it.

CAs are checking when shown to them

CA Rashmi

final cleared

680 Points Joined October 2008

i think the ca must not blindly rely on management statements,they can qualify there report if there doubts are not cleared,but surely there is more biggger picture to this scam,alone ramalingam raju can't do all this,there are more hands in the fraud because everything from cash balance,bank balance,debtors,creditore n also false accrued interest were involved.

let the report come.......

CA CS Akashdeep Singh

Practicing CA

1394 Points Joined June 2008

i agree with rashmi

it is not possible to do a such a big fraud without the help of middle level and other senior level management.

He is trying to save all other persons except him from such fraud as he mentioned in their letter

sekhar

student-PE-II`

41 Points Joined October 2008

Sorry for saying these words in this issue

the documents given to CA is to be checked by himself whether these documents have appropriate evidence or not.

we can' t say like our hands are restricted within the norms provided by the statutory authorities

We, as chartered accountants should use our experience and knowledge to secure the interest of shareholders.

I think our financial analysis is some what should be changed because since ten years 'SATYAM' raju has provided us cooked financial statements and we relied onthese and made our so called financial analysis by calculating EPS ....etc., By these changes i got a view to find the real intent and content of the companies. we can't gamble our money by relying by the financial statements alone.

May be i was wrong in my view , if any fellow members clarify my confusion regarding these analysis and making the investment in these companies.

i am not blaming Raju or PWC., my doubt is how can a ordinary man depend on these technical and fundamental analysis.

I even respect the hardwork and dedication of Mr. Raju., who focussed his attention and commitment towards the company for nearly 20 years even though he commited the blunders in the aspect of shareholders.

please clarify in this regard.