PUBLIC ACCOUNTING SYSTEM

Minister for Power and Corporate Affairs M. Veerappa Moily on Saturday said the Centre would take steps to strengthen the public accounting system to ensure transparency in administration.

Inaugurating the two-day regional conference of Southern India Regional Council (SIRC) of the Institute of Chartered Accountants of India (ICAI), he said a meeting of stakeholders would be convened to discuss the issue.

Mr. Moily said he believed in efficient corporate governance, which was the natural corollary of transparent, consistent and complete accounting practice that provided a reliable set of information on the most optimal use of public resources to stakeholders.

The development could be wholesome only in the background of strong accounting framework. While the corporate sector was a miniscule component of the overall economic activity, special emphasis on government-run bodies, urban local bodies and public sector entities was of crucial importance, he said.

Scrutiny

In his address, K. Vishwanathan, chairman, SIRC, ICAI, said there was increased scrutiny of deficiencies in the financial reporting process and corporate disclosure requirements in view of some recent high profile corporate collapse.

The development had a negative and cumulative impact on the perceived credibility of financial reporting. “The issue of accounting profession and its effectiveness is now at the forefront of public debate,” he said.

Thus, restoration of people’s confidence in the profession was of paramount importance, he added.