Allowing a foreign auditor to audit Indian Company Accounts

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c.v.sarma

c.v.sarma (Querist)
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07 August 2009 In the Case of Satyam, a foreign auditing company has been appointed, eventhough the Balance Sheet and other Financial Statements have been signed by the members of the Institute of Chartered Accountants of India. How it is possible to appoint foreign companies to be appointed as the auditors of Indian Companies. Please give the answer in detail explaining the Professional Ethics issued by ICAI in this regard.

thanks

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sarma

vrnanda

vrnanda (Expert)
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02 September 2009 Hi C.V. Sarma,

Please find the following useful explanation:
As you know the fact that Only an individual, or partnership firm can appointed as an auditors as per companies act.

Hence it is very clear that the Price Waterhou Coopers Pvt Ltd is not appointed as auditors, Only Price Waterhouse which is a partnership firm is appointed as an auditor. There could be arrangements/agreements with the foreign entity, which is now under scrutiny by ICAI for all such arrangements.

In the same way, S.R. Batliboi & Co for Ernst and Young, B.S.R & Co for KPMG and Deloitte Haskins & Sells for Deloitte.

Hope this information is helpful for your doubt.