Govt collects info on companies, auditors violating accounting norms
Mar 11 2013 , New Delhi
In recent times, there have been many instances of companies found violating various accounting norms. Besides, in some instances, the audit firms were also in violation of rules.
Replying to queries, including the number of companies and audit firms found guilty of violation of accounting principles and financial irregularities during the last three years and current year, Corporate Affairs Minister Sachin Pilot said in a written reply to the Rajya Sabha that such information is being collected.
The Minister's response was also to a query on the details of losses suffered by the exchequer due to such violations and irregularities.
"The information is being collected and will be laid on the Table of the House," Pilot said.
Further, there was a query on whether "the accounting irregularities by Pricewaterhouse Coopers (PwC), earlier in Satyam and now in Nokia, has alerted the government for strict action".
The new Companies Bill, which is awaiting Rajya Sabha's approval, has various provisions to strengthen monitoring of accounting practices at firms, including rotation of auditors after a specific period of time.