ICAI Accuses top 3 Audit Firms for professional misconduct : IL&FS Crises
The Institute ofChartered Accountants of India (ICAI) has reported that the statutory auditors of Infrastructure Leasing and Financial Services (IL&FS) Ltd the parent company of debt-laden IL&FS Group – and two of its subsidiaries, IL&FS Transportation Networks Ltd (ITNL) and IL&FS Financial Services Ltd (IFIN) are prima facie guity ofprofessional misconduct.
The names listed by ICAI are top 3 Audit Firms :Deloitte Haskins & Sells, BSR & Associates LLP and SR Batliboi. Further now full fledged investigations will be held against the partners of these three audit firms.
The ICAI, in a written reply to the publication, confirmed that the statutory auditors of IL&FS Ltd, ITNL and IFIN have been held prima facie guilty of professional misconduct for the financial years 2016-17 and 2017-18.
SR Batliboi was the statutory auditor of IL&FS Ltd for 2017-18, whereas Deloitte Haskins & Sells was the firm’s auditorin 2016-17.
For ITNL, the statutory auditor for 2017-18 was SR Batliboi. Ajoint audit was conducted by SR Batliboi and Deloitte Haskins & Sells for 2016-17.
In IFINs case, there was a joint audit by Deloitte Haskins & Sells and BSR & Co for 2017-18. In 2017-18, Deloitte Haskins & Sells was the statutory auditor of IFIN.
As per the report the ICAI has already send formal communication to partners of these 3 Audit Firms.
Source : Moneycontrol.com
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