CA NeWs Beta*: AUDIT REPORT SIGNATURE JUST A FORMALITY???

Search This Site

Thursday, December 29, 2011

AUDIT REPORT SIGNATURE JUST A FORMALITY???

Prithvi ropes in new auditor as V.K. Asthana quitsOur Bureau Share  ·
print   ·   T+    Hyderabad, Dec. 28:  The task of getting its books
audited has come full circle for Prithvi Information Solutions in a
span of one year.
V.K. Asthana and Company, which had taken over as auditors of the
company from Walker and Chandiok in 2009, has just walked out ahead of
submitting its audit for 2010-11.
The company appointed P Murali and Company (Hyderabad) as auditors for
2011-12 in almost similar circumstances that made the firm to rope in
V.K. Ashtana. It was brought in around same time in 2009 after Walker
and Chandiok had expressed its ‘inability' to continue as its auditor
and quit. The latter stepped in after Price Waterhouse quit a few
months prior to that.
V K Asthana had resigned in November 2011, refusing to sign the audit
for 2010-11 a few days ahead of the annual general meeting (AGM). It
sent a mail to the management that it disowned the Audit Report and
financials. It felt that the Audit Committee meeting held in September
was incomplete and pointed out that it had not signed the report that
was discussed in that meeting.
The AGM, however, cleared the audit report. “We have taken views from
experts on the issue. As far as we are concerned, the audit report for
2010-11 was adopted. Signature is just a formality and we don't think
that is required,” Mr Satish Kumar, Managing Director of Prithvi
Information Solutions, told Business Line when approached for his
comments on the issue.
Asked whether the company would go for re-audit to clear the air, he
said there was no need for fresh audit and that the issue was a closed
one.
In the minutes submitted to Bombay Stock Exchange on Monday, the
company claimed that the auditor had given his draft audit report
electronically (in a pen drive) which was called for discussion in
September. “It was modified on the computer,” the minutes, signed by
the Chair (Board member Dr S P Narang) said.
Interesting to note that the company had admitted that it had
‘overstated' and ‘understated' entries in the books for the financial
year ended March 31, 2010, but had corrected much later.
Meanwhile, the company claimed that Andhra Pradesh High Court
dismissed Deutsche Bank's petition on December 26.

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...
For mobile version of this site click here


News Archive

Recommended Post Slide Out For Blogger