The Hindu : Andhra Pradesh News : ‘Irregularities in accounting should be nipped in bud’

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Thursday, Dec 25, 2008
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Andhra Pradesh

Andhra Pradesh

‘Irregularities in accounting should be nipped in bud’

Special Correspondent

HYDERABAD: Chairman of State Human Rights Commission Justice B. Subhashan Reddy had a poser for the Chartered Accountants why scams had become the order of the day in spite of strict accounting procedures and regulations.

He raised this pertinent question at the inaugural function of a two-day national conference on ‘Emerging paradigm of Accountancy Profession’ being held to mark the diamond jubilee of the Institute of Chartered Accountants of India, here on Wednesday.

‘Prevention better’

Justice Subhashan Reddy said though there were abundant laws and regulations under RBI, their enforcement was poor resulting in frauds. The principle of ‘Prevention is better than cure’ should also be applied to accountancy to nip the irregularities in the bud.

ICAI president Ved Jain said Indian chartered accountants, because of their wide curriculum and rigorous practical training, were set to emerge as multi-dimensional professionals offering a gamut of business solutions at global level. He said ICAI had made it mandatory for members and students to help local bodies, government departments and NGOs with accounting. A separate committee was formed to review public finance and budget. From next year, CA students would also take part in mandatory social service for 10 hours.

Mr. Shantilal Daga, chairman, Peer Review Board, said ICAI had constituted Financial Reporting Review Board, an independent body for reviewing published financial documents and detecting lapses. From next year, firms could appoint auditors only after clearance by Peer Review Board and should follow quality control standards as part of initiatives to check lapses in accounting.

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