Task force to vet ties between audit entities

The Institute of Chartered Accountants of India (ICAI) has constituted a high-powered Task Force to scrutinise tie-ups between Indian chartered accounting (CA) firms and their overseas entities in the wake of “growing doubts” over role of auditors of PricewaterhouseCoopers (PwC) in the Satyam fraud case.

“The Task Force will examine the terms and conditions of the agreements between the Indian CA firms and their multinational entities,” Institute of Chartered Accountants of India  Vice President Amarjit Chopra told Deccan Herald.

“The Task Force will also examine the fixing accountability in case there is any accounting and auditing malpractices by the auditors of Indian Charted Accountant firms as well as firms having tie ups with multinational consulting agencies,” Amarjit Chopra  added.
Submit documents

The ICAI, he said, has asked 12 Indian CA firms, who have affiliations with multinational agencies to submit “certain” documents for study.

They have been asked to provide papers which include copy of partnership deed, Income Tax assessment orders for the past three years, computation of income and copies of return.

Further, the have been asked to submit details of money paid and received from foreign partners and copies of letterheads and visiting cards used by employees, he said. “The objective behind scrutiny of tie-ups between Indian CA firms and their multinational affiliates is to make our recommendations on the Satyam fiasco more comprehensive,” sources said.