The regulator of accounting firms in India has accused the Big Four firms of
bending the rules and offering services they are not entitled to provide in the
Times of India reports that a committee of the Institute of Chartered
Accountants of India (ICAI) has concluded that the Big Four – PwC, KPMG,
Deloitte and Ernst & Young – are offering services through local affiliates
but are defacto the same bodies. Indian law prevents foreign investment in
auditing, accounting, book keeping and taxations services.
The Times quotes committee chairman and former ICAI chairman Uttam Prakash
Agarwak saying: “It has been noticed that MAFs (multinational accounting firms),
entered through automatic/FIPB route for rendering consultancy services, are
transgressing the permission so granted and are rendering taxation services,
auditing, accounting andbook keeping services and legal services.”
PwC recently became embroiled in the Satyam scandal as the company’s auditor.
Two partners from the firm were arrested more than a year ago. One, Talluri
Srinivas, was recently bailed. Satyam’s chairman Ramalinga Raju confesed to
Commissioning and preparing an asset valuation for financial reporting should involve a three way dialogue between the client, valuer & auditor
As a change-agent, internal audit has a lot going for it, but many internal audit functions need to upgrade their skills.
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Audit committee chair is now very much the lynchpin of good company governance, and can consequently expect more public scrutiny