Auditors | Common News Update

Oct222019 by adminNo Comments

Auditors ‘complicit’ in UK corporate failures, MPs say

Business

By Wale Azeez, business reporter MPs have accused auditors of being "complicit" in the recent failure of British corporate giants, after it emerged that Thomas Cook paid PwC up to £21m in consultancy fees.The travel group which collapsed last month, putting 9,000 UK jobs in jeopardy, had paid the sum to its former auditor for consultancy and non-audit work between 2007 and 2016, MPs were told on Tuesday. During an evidence session of auditors facing the Commons Business, Energy and Industrial Strategy (BEIS) committee, PwC's head of audit, Hemione Hudson, told MPs that the firm also earned £4m from providing the travel company with advice on pay levels for executives, at the same time as auditing the accounts between 2007 and 2012.Thoma...

Jul182019 by adminNo Comments

IL&FS: NCLT allows govt to prosecute auditors Deloitte, BSR; C Sivasankaran and 2 independent directors

Finance

MUMBAI: The NCLT has given a go-ahead to government to prosecute Deloitte and BSR Associates for their failure to detect and report the scams that took place across the now bankrupt IL&FS group and 21 other entities, when they were the auditors of IL&FS Financial Services. The NCLT in an order posted on its website on Thursday said the corporate affairs ministry can go ahead with prosecution based on the findings of the probe conducted by the Serious Fraud Investigation Office (SFIO). But the posting does not mention its views on the government demand to ban these two auditors for five years from business, though. The tribunal also allowed to the government plea to implead Udayan Sen, a partners of Deloitte, and BSR Associates partners Kalpesh Mehta and Sampath Ganesh. Both these a...

Jul152019 by adminNo Comments

DHFL auditors seek more info on financials

Finance

New Delhi: Auditors of crisis-hit DHFL have sought more information from the company's management, according to sources. On Saturday, the housing finance company reported a loss of Rs 2,224 crore for the quarter ended March 31. The firm had a profit of Rs 134.35 crore in the year-ago period. The sources said auditors have sought additional information on the company's financials under Section 143 of the Companies Act, 2013. Section 143 pertains to powers and duties of auditors and auditing standards. Deloitte Haskins and Chaturvedi & Shah are the auditors of the company. When contacted, a Deloitte India spokesperson said, "We do not comment on market speculation". Chaturvedi & Shah could not be immediately contacted. "The Audit Committee has directed the management to place th...

May52019 by adminNo Comments

IL&FS case: Auditors have many questions to answer, says Corporate Affairs Secretary

Finance

New Delhi: As the probe continues into the IL&FS case, a senior government official has said the group's auditors have "many questions to answer" prima facie as they are supposed to act as "gatekeepers" and detect widespread irregularities, but it will be premature to pass any judgement at this stage. "We are not expecting an auditor to detect a needle in a haystack, but if an elephant is in a room they ought to find it. That is the issue," Corporate Affairs Secretary Injeti Srinivas said. Crisis-hit IL&FS group's debt burden is estimated to be more than Rs 94,000 crore and various entities, including some former officials and auditors, are under the scanner for widespread irregularities and huge loan defaults. "Prima facie, it appears that they (auditors) have many questions to ...

Dec132018 by adminNo Comments

Auditors face market share cap after CMA probe

Business

The UK’s big four auditors will next week face an unprecedented move to limit their market share and allow smaller rivals to gatecrash their self-confessed oligopoly as regulators shake up a sector rattled by a string of corporate collapses. Sky News has learnt that the Competition and Markets Authority (CMA) is preparing to recommend a series of remedies to bolster competition in the audit sector following a two-month market study, but that it will stop short of demanding a full-break-up of the dominant quartet: Deloitte, EY, KPMG and PricewaterhouseCoopers (PwC).Although they have yet to be formally briefed on the CMA's conclusions, senior figures in the profession have learned in recent days about its main recommendations, which nonetheless remain subject to change...