Independent auditors let us down in corporate frauds: Kapil SibalJanuary 21st, 2009 - 1:35 am ICT by ANI
New Delhi, Jan. 20 (ANI): Union Science and Technology Minister Kapil Sibal on Tuesday expressed government’’s disappointment over the Satyam Computers fraud by stating that independent auditors in frauds involving corporate houses let the government feel down. The system needs to be changed.
Sibal said, “You have the independent regulators, the independent directors, independent auditors in the context of the Companies Act. And what have these independent auditors done? I don”t want to take examples. But they have let us down.”
Sibal also suggested setting up a body on the lines of the Election Commission to oversee auditors” functioning.
“We need to change the system, on the basis of which we appoint these independent regulators. We need to make sure that they are not necessarily accountable directly to government or that they have a secure tenure through which they can attain independence like for example the Election Commission, where term of cannot be interfered with except through very stringent procedures or removals,” Kapil Sibbal added. (ANI)
Tags: companies act, corporate frauds, corporate houses, disappointment, election commission, fraud, independent auditors, independent directors, kapil sibal, New Delhi, regulators, satyam computers, science and technology, technology minister, tenure