Joint audit is a good idea, will try finishing Byju’s probe at the earliest: ICAI President

Joint audit should be made applicable for public interest entities. There should be greater scrutiny for such companies, says Debashis Mitra.

Mannu Arora
  • Updated On Jan 9, 2023 at 11:34 AM IST
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<p>ICAI President Debashis Mitra </p>
ICAI President Debashis Mitra
Debashis Mitra, President of the Institute of Chartered Accountants of India, discussed his thoughts on mandatory joint audits, Byju's probe around financial disclosures which is conducted by the Institute, as well as the Social Stock Exchange. Edited excerpts:

Q: What is your view on mandatory joint audits?

Debashis Mitra: Mandatory Joint audit is already prevalent in India. For instance, it is applicable to PSUs and insurance companies. Our belief is it will improve audit quality.

Q: What gives you this belief that mandatory joint audits will improve audit quality given that the world's biggest economy, the US, does not have such sort of regulation?

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Debashis Mitra: As I said mandatory joint audit is already prevalent in India. We are not saying for all entities but for public interest entities, the idea should be made applicable. There should be greater scrutiny for such companies and two eyes are always better than one. A mandatory joint audit is not a divided responsibility but a joint responsibility.

Q: ICAI is probing Byju's accounts and its financial disclosures. When will the probe be completed?

Debashis Mitra: It will be difficult to give a specific timeline but we will try to finish it as soon as possible.

Q: Big auditor KPMG India recently settled a case for $1 million with the US audit watchdog. What sort of signals does this episode have for the Indian regulators?

Debashis Mitra: We don't have a settlement mechanism here, but the broader message is that the Institute will have zero tolerance toward any professional neglect. Our disciplinary mechanism will not spare anyone found guilty.

Q: What's the next role looking for the ICAI in respect of the Social Stock Exchange?

Debashis Mitra: The SEBI has already notified the rules and regulations of the Social Stock Exchange. The ICAI has set up a self-regulatory organization (SRO) the Institute of Social Auditors of India as a Section 8 company to regulate the profession. The Institute has framed 16 social audit standards. Next, the syllabus will be built by the National Institute of Securities Market (NISM), a body under NSE that will also conduct exams for prospective social auditors. The Institute will not spare any social auditor if found guilty.

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Q: What are your top expectations from the Budget 2023?

Debashis Mitra: The Budget should aim at widening the tax net as well as lay down greater stress on infra spending and Digital India.

Q: Last what will be your New Year Resolution professionally and personally as well as a message for CFO and audit community?

Debashis Mitra: My New Year resolution would be to continue building public trust in the profession. If the accounting and audit profession has to succeed, dignity and respect are extremely important. Personally, I strive to remain in good health, be happy and peaceful and look forward to continuing to build positivity all around.

Regarding the message for both the CFOs and the auditors, it would be to keep offering value-added services, be adaptive to change, and keep the flag of the nation high.
  • Published On Jan 9, 2023 at 11:34 AM IST
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