MNC audit firms dodging Indian laws, says ICAI

 
“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 and book keeping services and legal services,” ICAI probing the Satyam scam said. The big four international accounting firms are operating in India through their domestic affiliates, it said. Price Waterhouse Bangalore, an affiliate of PricewaterhouseCoopers, had been auditing the accounts of Satyam Computer Services, a company that was involved in the biggest accounting fraud in the country.

“... Indian firms and MAFs are defacto the same entities providing the assurance, management and related services and as such their operations are designed to circumvent the provisions of the Chartered Accountants Act, 1949, and regulations framed thereunder,” said the committee, headed by former ICAI President Uttam Prakash Agarwal.

The government does not allow Foreign Direct Investment (FDI) in accounting, auditing and book keeping, taxation and legal services, it said.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry