Amid instances of frauds at companies, chartered accountants are facing the “most heat today” as strong auditing and accounting standards are in place, according to a senior government official.
The remarks of Corporate Affairs Secretary Injeti Srinivas also come at a time when the role of auditors has come under the scanner for alleged violations, including in the IL&FS case.
“When all the corporate frauds, crises came one after the other, we ran after chartered accountants. I think they are facing the most heat today… the statutory auditors,” he said.
“They are facing the most heat. Why? (Because of) very strong auditing standards, accounting standards, institution for the chartered accountants and now NAFRA (National Financial Reporting Authority) has come,” he said.
He also mentioned that credit rating agencies are not facing as much heat as statutory auditors since there is some subjectivity for the former.
“Now, we are talking about revisiting framework for credit rating agencies also… It should be transparent and objective. There should not be any room for subjectivity,” Srinivas said.
Speaking at a national seminar on valuation, he wondered why valuation profession was flying below the radar.
“Why valuers are not having control? Because there is no institute for valuers, no valuation standards, no guidelines also.
“It is said that it never happens that a valuer doesn’t deliver what a client wants… Your assumptions have to be tailor made, bespoke… to market requirements. These are problems. Some of it is definitely in lighter vein,” he said, adding that valuation profession cannot fly below the radar anymore.