http://economictimes.indiatimes.com/news/news-by-industry/services/consultancy-/-audit/icai-asks-big-four-audit-firms-not-to-buy-out-indian-cos/articleshow/7444737.cms
NEW DELHI: Amid concerns of alleged 'surrogate practices' of 'Big
Four' accounting firms,regulator ICAI has asked
PriceWaterhouseCoopers, KPMG , Ernst & Young and Deloitte to
desist from acquiring Indian audit outfits.
"Worldwide, there is a talk that there should be decongestion of the
accounting profession...So that's what we have suggested them (Big
Four)... instead of acquiring firms please provide work to small and
medium practitioners and go in for quality control," ICAI President
Amarjit Chopra said.
Chopra made these comments days before the regulator is set to submit
its third report on the Satyam scam to the Ministry of Corporate
Affairs. This report pertains to the alleged 'surrogate practice' of
the global auditing firms in India.
Chopra, who is about to demit office on February 11, recently met
representatives of the Big Four.
"We advised them that rather than acquisition of Indian firms, go in
for hand holding. It means they identify firms in each region and do
the quality control," he said.
Foreign accounting firms are not allowed to practice accounting in
India, as Foreign Direct Investment (FDI) in accounting, auditing and
book keeping, taxation and legal services is not permitted.
However, the foreign firms are known for establishing presence in
India through local partners firms, lending them their names through
non-transparent arrangements.
These accounting and consultancy firms have been under public eye
after the Rs 14,000-crore accounting fraud at Satyam Computer Services
came to light in January 2009.
Two of the partners of Price Waterhouse, Bangalore, were allegedly
found negligent in auditing of Satyam.
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