Do you have any idea how many investors and how much is parked with I&LFS. Why should I be bothered to think about them? I got my audit fee. Audit report and its comments are just like the Holy Bible and holy sermons respectively for an investor across the globe. But are auditors able to keep up with the expectation? How much we can trust the auditors of the company and their reports. What about the reports and its trustworthiness.
PwC fined £5m over Connaught audit, EY Tech Data audit fine £1.8m, PwC Merrill Lynch $1m fine, Tyco Scandal 2002,Enron Scandal, Healthsouth Scandal 2003 ,Freddie Mac Scandal 2003, AIG Scandal 2005, Bernie Madoff Scandal (2008), LEHMAN BROTHERS SCANDAL (2008),Satyam Scandal 2009,I&LFS. Well, these are few of the renowned names but what about those where the name did not come in front and investors just burnt the fingers.
Now please don’t jump up on to defame any particular professional bodies. Defaming one professional body and creating it as hype to win the council member position and then escalate to the topmost position of a professional body is a foolish and old act. Well, those who defamed another profession please check their firm's name in any Chit Fund scam etc. You will be surprised may be shocked but the truth is on the MCA website. Hence stop defaming and look into the broader issues. These things have impacted society and made investors either to commit suicide in the worst case. It's not about Chartered Accountants or Cost Accountants. It’s about only auditors and its community. Don’t create a caste system.
Investors are simply burning their hands and all auditors are just busy with number game. The small signature of the auditor is of high value for the investor community and for all those who invest their hard earned money. Do we really need auditors and their signature? We can just bribe the auditors and pay them a fee to cook numbers and place their signature just by affirming that the business is very good and the books of accounts and business reflect a true and fair view of the organization.
Please don’t raise the voice related to corporate governance. The responsibility of corporate governance does not lie with corporates, but with the auditors who are real drivers behind the same. Corporate governance is only strengthened when auditor of all professional bodies are together. Defaming one professional body and treating it as hype to win the council member position and then escalate to the topmost position of a professional body is a foolish and old act. We have seen these defamation matters much but in the end, the investors or the minority shareholders are suffering. They have lost millions and billions due to this defamed strategy adopted by the council members.
Always remember that when professional bodies start defamation of other professional bodies corrupt corporates and lobbyists take advantage of the same. When all professional bodies unite to fight against these corrupt practices then only social responsibility is met by the auditors.
This is not about blaming one professional body. The body has nothing to do. Auditors are universal and hence they are not to be separated just like caste system. Auditors carry a high social responsibility. Even if you still try to segregate between any particular bodies then I would like to say that everybody and its members somehow of the other are part of audit failures at various point of time.
Still, if someone wants to pinpoint any particular professional body then please get in West Bengal and figure out how many firms of such bodies have signed various documents of such Chit Fund Companies. Those who are pinpointing fingers at another profession please get into the MCA website and one can get the name of the Chit Funds audited by various bodies from 2005 to 2011 period.
Many god names and surprises will come up when one will dig into the auditor’s report and various document signatures by these members of the auditing professional bodies.
Yes, the very signature made people totally beggar at the end of the day. The Auditors signature is of high value. Investors across the globe get into audit report to get an idea about the business and its state of affair. The trust the auditor's comments and reports just like a Holy Bible.
Well, I am not talking only for the Indian auditors but for the whole profession, by whatever name you might call them.
Every book, every meeting, every seminars/workshop, every member, every council just failed in the different times despite spending millions and billions for developing the auditors and uplifting the auditing standards.
The auditors did not fail but they made every investor, every minority shareholders and over and above the professionals like Cost Accountant or Chartered Accountants. Every year millions of funds are being spent on organizing event by Cost Accountants and Chartered Accountants regarding strengthening the Auditor Standards.
Well we all know that Facebook Platform is being flooded with images of such events and Council Members and Presidents are taking snaps but is there any real benefit which the society draws from such events. If auditing standards have been uplifted and improvised then how did the Sharada SCAM happened which also required auditors signature? There are many Accountant firms who were auditors of these Chit Fund companies.
What action has been taken against those auditors and auditing firms who have signed those documents who affirmed that the companies are doing true and fair business? Well, many of these firms auditors were or now in the current council members. Yes, don’t be shocked. Money from one pocket goes to another and that is what we call flow of fund within the economy.
Do these auditing firms or council members or other members have any idea about the value of their signature and the billion club trust built on that signature?
Auditors are forgetting that their report has a social responsibility. It might be easy for any council member to give sermons to 500 people about auditing standards when his own firm is engaged or have signed chit funds audited reports or any other documents.
Time has come to refuse clients where malpractices are being practised by these professional bodies. When all professional bodies unite to fight against these corrupt practices and refuse to sign or do the audit of these companies then will have no option but to follow the true and fair view of the accounting and corporate governance path.
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