I would say inherently one should follow the system audit properly. Whether written or not. When the Companies Act 1956/2013 has provided that mere mere book entry of profit is not permitted , and has to be reported in Audit Report with specific and ultimate effect on profit shown , did not bother to report for two years in Ratnamani Engineering Limited well back 31.10.1992 and 31.03.1994 !!!! No body bothered till this date , neither alma, law supervisory office even nor Judiciary !!!!! with due respect to all. Not only this but Prospectus submitted for Public issue of shares in 1994 also had been passed through by SEBI and R O C !!! No issue.
Some guidance is required . But one should introspect in to the affairs and process fully and find out where there is loop holes and deficiency in the process and one should find out which importance should be given in Audit.
Shah D J
On Thursday, 15 October 2015 3:01 AM, "'Venkatakrishnan R' rvk@rvkassociates.com [ICAI_CIRC_MEERUT_CA]" <ICAI_CIRC_MEERUT_CA@yahoogroups.com> wrote:
The recent incident of SUSPECTED/ALLEGED, whichever one is more diplomatic, money laundering is yet another wake up call for our profession and leadership. This is not the first nor the last time that we are going to be confronted with the such incidents. Some key questions, from our professional perspective, that are bound to be asked would definitely include:1. Did the audits, both concurrent and annual statutory, flag the abnormal transactions?2. That the transactions slipped passed the KYC, AML and other FEMA guidelines is yet another case where form and overtaken substance in compliance. Professionally we are terribly guilty of having allowed it to be perpetuated!3. The Institute has not created, to best of my knowledge, any repository of frauds for professional use of its members. This assumes importance considering that a large part of the professional community is dependent on the banking sector for its professional practice.I am sure these may not be high priority in the din of the electioneering that is happening but it is time members take charge of some of these and not expect our esteemed professional colleagues vested with some of these responsibilities to take any immediate action.Best wishes,R Venkatakrishnan FCA DISA(ICAI)
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Posted by: Dipak Shah <djshah1944@yahoo.com>
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