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.
