Tuesday, September 24, 2013


Deloitte has done the ultimate crime. They signed the accounts of Financial Technologies, more than a month ago and it has been mailed to shareholders.

Now, a day or two before the AGM, they “Withdraw’ their signature!! Clearly they have been spooked by post balance sheet events and are running scared of a class action suit.

Absolutely unprofessional and clearly shows that they do not know what they signed and are unwilling to stand by their audit.

One always knew that audit is an approximation, but this kind of drama is the limit. What is to stop them from withdrawing their signatures two years in to the future?

Wonder if ICAI will have anything to say about this unprofessional firm ? This leaves FT in a corner. No audited accounts. No dividend declaration!! And which self respecting auditor would take this client on? And when could the accounts be audited? The legal deadline expires on 30th September!! Wonder if the company comes and says that no one is willing to be an auditor, what happens??

Will the ICAI revoke the license of Deloitte?

And FT is now beyond redemption- As a shareholder, I read from the internet about this incident! The AGM is scheduled for Wednesday, 25th and as of 24th night, I have no idea that the accounts will not be adopted!!

The Financial Technologies audit fiasco is a good thing to set in motion a change about audit and auditors- It is too much to expect ICAI to do anything- It would have to be forced upon the audit industry


Reni George said...

Dear sir,
We have a finance minister,who always laments that thereis very less participation in equity markets,people prefer buying gold thereby stoking the CAD.Could some tell him that if he wants to make Indians participate in the equity markets,then its efficiency has to be improved,the promoters,the auditors are all to be made responsible for any wrongdoings in the company,it should be fast and should take time the way our court gives out a ruling.

Unknown said...

Guess, the way to work around fradulent practices is to evaluate equity shares on liquidation basis, and not on going concern basis. &

By making sure, the buying price is so low that the quality (or lack of it)will take care of itself...