Thursday, May 29, 2014

Unaudited or Audited. Accounts can be written the way the promoter wants- ICAI zindabad

The audit of MCX by PWC (http://www.livemint.com/Money/P8D2moZNHxa8IaRXDTJJII/PwC-audit-of-MCX-details-questionable-transactions.html ) shows the routes for funneling out money through related party transactions. To me, these should have been spotted by anyone with a wee bit of common sense. Did not even require a qualified CA to find out that it was wrong.
It clearly demonstrates that audit firms can be 'managed'. The statutory auditors cannot escape blame. If indeed they did, ICAI should strip them of their certificate to do business as Chartered Accountants. Clearly, hand in glove with the key  management / promoter personnel.
It also demonstrates the extent to which we can rely on audited accounts!!

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