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Corporate Affairs Min lens on instances of auditors quitting companies

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Press Trust of India New Delhi
Last Updated : Jun 06 2018 | 9:35 PM IST

The corporate affairs ministry is looking at recent instances of auditors quitting listed firms to understand whether there have been violations of companies law, according to a senior official.

The ministry is also believed to have sent communications to some of the auditors concerned seeking details about issues concerning to the particular company.

In recent times, scores of auditors have left audit work of companies, mostly listed ones, citing various reasons.

"Certainly, we are alive to these issues," a senior official said today in response to queries on whether the ministry is looking at instances of many auditors leaving audit work at companies.

The official said that in case the conduct of an auditor is not clear, then the ministry would issue a letter seeking more details.

In recent weeks, Price Waterhouse quit audit mandate of Vakrangee and Atlanta, while Deloitte resigned as statutory auditor of Manpasand Beverages. All the three are listed companies.

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The Companies Act, 2013 contains elaborate provisions regarding liability of statutory auditors in case auditor has contravened the provisions knowingly or wilfully with the intention to deceive the company or its shareholders or creditors or tax authorities.

Separately, the official said the ministry is inquiring into around 10-15 complaints related to auditors.

The ministry is implementing the Companies Act.

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First Published: Jun 06 2018 | 9:35 PM IST

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