Gensol Auditor to face the heat after SEBI's Report? ICAI yet to order probe:

Gensol Auditor to face the heat after SEBI's Report? ICAI yet to order probe SEBI has ordered a review of Gensol Engineering because it thinks company leaders might have misused money. Experts disagree about whether auditors should have caught these problems earlier. After SEBI's report came out, some investors criticized Gensol's internal audit team and outside auditors for not finding issues with how the company's money was being spent. Ashok Haldia, who used to work at ICAI, said audit committees must make sure money is used properly. Auditors have to check and report how funds are used. New SEBI rules about related party deals and proposed audit standards will help prevent fraud. However, an audit leader at a big firm defended auditors, saying company managers often hide information from them. In this case, Gensol's owners reportedly faked documents to make it look like they paid debts on time. Gensol's annual report stated they hired Talati & Talati LLP to monitor their financial controls and found no problems during the year. ICAI sources said their review board hasn't started investigating Gensol yet, though they handle about 100 similar investigations yearly. Experts noted that related party transactions often appear in fraud cases, with money being quickly moved through multiple transactions to hide its path. Adopting international auditing standards in India could make auditors more responsible for tracking diverted funds.