NEW DELHI: The executive is taking a look at starting up difficult motion in opposition to Deloitte, together with possible restrictions on its audit practice, for its alleged failure to prevent and notice irregularities in IL&FS Financial Services (IFIN). In addition, the company and its affiliates could also be got rid of as auditors from last IL&FS group firms.
Sources said the probe by means of the Serious Fraud Investigation Office (SFIO) had thrown up a number of instances of the auditor’s failure to prevent a fraud that has put all the monetary system in peril. “There had been lapses which allowed the fraud at IL&FS to go on for years,” said an professional. The executive is taking a look at various options, together with the usage of phase 140 of the Companies Act to take up fresh audit work for 5 years. This can only be carried out by means of the National Company Law Tribunal if it concludes that the auditor acted in a fraudulent manner or colluded in a fraud.
“No such motion has been proposed as indicated for your mail beneath. The investigations at the company (IFIN) are in growth and we are cooperating totally. We reaffirm that we have conducted our audits according to the Standards on Auditing and the applicable rules and regulations,” Deloitte said based on a question from TOI.
Deloitte’s position within the collapse of IL&FS, which impacted bank publicity of over Rs 90,000 crore, has been under SFIO’s scanner with a whistleblower’s grievance too being tested. The executive has also stepped in to order an investigation by means of ICAI and accounts also are being reopened.
In the past, Sebi ordered a ban on Pricewaterhouse’s audit work for its failure to behave in time within the Satyam scam, where the government had to supersede the board to take fee, similar to IL&FS.
Sources said the probe by means of the Serious Fraud Investigation Office (SFIO) had thrown up a number of instances of the auditor’s failure to prevent a fraud that has put all the monetary system in peril. “There had been lapses which allowed the fraud at IL&FS to go on for years,” said an professional. The executive is taking a look at various options, together with the usage of phase 140 of the Companies Act to take up fresh audit work for 5 years. This can only be carried out by means of the National Company Law Tribunal if it concludes that the auditor acted in a fraudulent manner or colluded in a fraud.
“No such motion has been proposed as indicated for your mail beneath. The investigations at the company (IFIN) are in growth and we are cooperating totally. We reaffirm that we have conducted our audits according to the Standards on Auditing and the applicable rules and regulations,” Deloitte said based on a question from TOI.
Deloitte’s position within the collapse of IL&FS, which impacted bank publicity of over Rs 90,000 crore, has been under SFIO’s scanner with a whistleblower’s grievance too being tested. The executive has also stepped in to order an investigation by means of ICAI and accounts also are being reopened.
In the past, Sebi ordered a ban on Pricewaterhouse’s audit work for its failure to behave in time within the Satyam scam, where the government had to supersede the board to take fee, similar to IL&FS.
IL&FS fiasco: Deloitte may face curbs on audits
![IL&FS fiasco: Deloitte may face curbs on audits]()
Reviewed by Kailash
on
April 28, 2019
Rating:
