Comments on: SEBI Committee recommended mandatory rotation of Partner doing audit of listed company http://taxguru.in/sebi/sebi-committee-recommended-mandatory-rotation-of-partner-doing-audit-of-listed-company.html Complete Tax Solution Sat, 26 May 2012 16:16:37 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Sivaram choudhry http://taxguru.in/sebi/sebi-committee-recommended-mandatory-rotation-of-partner-doing-audit-of-listed-company.html#comment-131319 Sivaram choudhry Tue, 21 Sep 2010 13:20:35 +0000 http://www.taxguru.in/?p=12601#comment-131319 This is the biggest mistake the committee has done. Now the instances will be even bigger and only smaller chartered accountants will be caught and punished. The committee clearly overlooked the structure of Indian CA firms. The myth of audit and auditors needs to be reviewed again. Today there are dozens of firms where even though 20 partners are there in reality one of them is the real owner and all others are just paid partners. Now what is the Independence, these paid partners have got in case of a rigged balance sheet. The committee has given a valid reason to rotate the partners as an order. Now the senior CAs will be happy that the committee has given them a route to escape the liability by asking some paid partner to sign the balance sheet. I sincerely doubt that the committee itself is filled with some senior and influential CAs. For outside world anyway a partner is a partner doesn't matter whether in reality he is a employee or otherwise. There is no shortage of CAs in India to do such paid job. This is the biggest mistake the committee has done. Now the instances will be even bigger and only smaller chartered accountants will be caught and punished.

The committee clearly overlooked the structure of Indian CA firms. The myth of audit and auditors needs to be reviewed again. Today there are dozens of firms where even though 20 partners are there in reality one of them is the real owner and all others are just paid partners. Now what is the Independence, these paid partners have got in case of a rigged balance sheet. The committee has given a valid reason to rotate the partners as an order. Now the senior CAs will be happy that the committee has given them a route to escape the liability by asking some paid partner to sign the balance sheet. I sincerely doubt that the committee itself is filled with some senior and influential CAs.

For outside world anyway a partner is a partner doesn’t matter whether in reality he is a employee or otherwise.

There is no shortage of CAs in India to do such paid job.

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