Auditors Who Ignoring Laws Will Be Punished

The time of indulgence is measured and thoughtful indeed finished for auditors responsible for ensuring compliance with control procedures of accounting firms. As of November 2012, the Financial Reporting Council (FRC) sanction any breach.

"We plan to create a 'Enforcement Panel," said Dhiraj Seetulsing, Chairman of the Board of the FSC. It was Wednesday, September 12, at the inauguration of one of the first ever workshops organized by the FRC since its inception in 2004.

The role of the Enforcement Panel will examine the case of any auditor suspected offense of non-compliance with the legislation. The FRC will review the accounts already submitted officially to the boards of auditors customers.

"We have given enough time for the profession to take measures to correct practices that were not previously comply with the law. Now, offenders will suffer the appropriate consequences. Operationalization of this Enforcement Panel will help increase the vigilance of auditors in the exercise of their profession, "was added, for its part, Selvida Naiken, Chief Executive Officer (CEO).

It is a long list of violations committed by the auditors. That is the conclusion drawn by the FRC under exercise control over the mode of auditors. The exercise was conducted with 84 professionals who are registered with the FRC. It has allowed FRC to examine 163 cases. The aim of the initiative was to conduct an inventory of prédisponibilité auditors to comply with professional standards and the provisions of the law.

The most notable failure is the lack of documentation needed to support the verbal statement of the auditors to the effect that they have in fact complied with the procedures.

In his speech, Aleem Ramankhan member of the Audit Practice Review Panel of the FRC, said emphatically that it is not a long time since the absence of such documents will be considered malpractice.

Other forms of abuse, there is the absence of a document certifying that there has been a formal commitment that there has been renewed research in the service of an auditor. In many cases, there was no record regarding the recording of complaints. The report noted a lack of knowledge of the qualities required for audit.

More than half of cases scrutinized during exercise indicates that the auditors did not consider useful to develop a work plan before starting the verification exercise in itself.