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WHY AUDITEE HAS THE POWER TO APPOINT AUDITORS- SATYAM SCAM

CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT) (13196 Points)

07 January 2009

THE AUDITEE HAS THE POWER TO APPOINT THE AUDITORS.

WHY ?

WHY NOT THERE IS A CHANGE IN THIS SYSTEM?

WHAT IS YOUR OPINION ?

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7 Replies

gourav (student) (113 Points)
Replied 07 January 2009

Sir i am fully setisfied with your opinion.

If such change will be made in the system than the degree of independence ( which is a fundamental of audit ) can be increased at very higher level and this kind of frauds can be prevented.

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CA CS Akashdeep Singh (Practicing CA) (1394 Points)
Replied 07 January 2009

gud question ......if it impliments then it will change whole picture of CA profession

Sathyanarayana G (CA) (1121 Points)
Replied 07 January 2009

It is better to get the balance sheet attested by a notary public instead of a reputed CA firm. Because CAs will not accept the responsibility and shows the desclaimer statements they made in their Audit Report.

shailesh agarwal (professional accountant) (7642 Points)
Replied 07 January 2009

IF CA'S ARE NOT RESPOSIBLE THE WHY CA -WHY ICAI INSTITUTE AND WHY WE HERE-

Sathyanarayana G (CA) (1121 Points)
Replied 07 January 2009

We are only glorified accountants to attest the balance sheet and prepare the audit report as per the format and as per the direction given by the management. Where is the independance? Management says, if you don't give the report as per our direction, we will change the auditor.