Reserve Bank extends 'rest' period for auditors to 6 years - The Smart Investor

Reserve Bank extends 'rest' period for auditors to 6 years - The Smart Investor: Market News from one of the most comprehensive financial news networks in India, it provides daily insight of the stock market, industry news, business news, economy news, loans...



“Rest” and trust
This refers toAnup Roy’s report “Reserve Bank extends ‘rest’ period for auditors to 6 years”(Business Standard, July 28). The grounds for longer rest period for statutory central auditors(SCAs) of banks given in RBI circular dated July 27, 2017 more than justifies the enhancement of rest period for  SCAs from two years prevailing since 2001 to six years. They are also suggestive of unethical practices being followed by professionals and banks in tandem.
Let us concede that regulatory oversight alone cannot ensure best practices of governance in organizations which manage huge resources including public funds. And diminishing public trust in professionals is a matter for worry not only for the government or regulators, but for the common man and the taxpayer. In the given case, even the possibility of lateral movement of individuals from one CA firm to another can reduce the impact of forced ‘rest’ periods. It is difficult to build trust and honest behavior through statutes or directions.
In this context, the only option left is strict self-regulation by professional bodies. The institute of CAs, RBI and banks should expose unethical approaches by individual CA firms and their employees and where proved guilty the firms/individuals should be punished. If there are legal hurdles, GOI need to come to help them out.
M G Warrier, Mumbai




Comments

Post a Comment

Popular posts from this blog

NAVAGRAHA STOTRAM

NAVAGRAHA STOTRAM* According to astrology, the positions of the nine planets in the twelve constellations of the zodiac and their movements are considered to be quite significant. The nine planets ‘Navagraha’ affect every aspect of human life. They play an important role in the activities, physical and mental health and life of any individual. The unfavorable positioning of any of these planets can be the cause of problems, bad health, and stagnation for many people. However, there is a solution to avoid the ill effects of the position and movement of the ‘Navagraha’ in our lives. Navagraha mantras (or stotram) are simple mantras which work as powerful healing tools to reduce the negative effects of any of the nine planets. These mantras are Hindu holy hymn addressing the nine planets. Benefits Of Navagraha Stotram And The Way to Practice The Navagraha Stotram is written b y Rishi Vyasa and is considered to be the peace mantra for the nine planets. They are powerful m
Read more

THE SUNSET OF THE CENTURY

*SUNSET OF THE CENTURY: Rabindranath Tagore THE LAST SUN OF THE CENTURY SETS AMIDST THE BLOOD-RED COLOURS OF THE WEST AND THE WHIRLWIND OF HATRED. THE NAKED PASSION OF SELF-LOVE OF NATIONS IN ITS DRUNKEN DELIRIUM OF GREED IS DANCING TO THE CLASH OF STEEL AND THE HOWLING VERSES OF VENGEANCE. THE HUNGRY SELF OF THE NATION SHALL BURST IN A VIOLENCE OF FURY FROM ITS OWNSHAMELESS FEEDING FOR IT HAS MADE THE WORLDITS FOOD, AND LICKING IT, CRUNCHING IT AND SWALLOWING IT IN BIG MORSELS, IT SWELLS AND SWELLS TILL IN THE MIDST OF ITS UNHOLY FEAST DESCENDS THE SUDDEN HEAVEN PIERCING ITS HEART OF GROSSNESS…   *Note: “The Sunset of the Century”, translated by the poet, from Naivedya; The English Writings of   Rabindranathtagore, Volume II,Delhi 1996, page 466. Quoted in his article ‘Critiquing nationalism’ by K Satchidanandan (Frontline, November 14, 2014). The article takes you to a much broader spectrum. HAPPY READING(READ MORE STAN
Read more

The King of Ragas: Sankarabharanam

                       The King of Ragas                      --------------------------     Long ago  serpents were put to lot of hardships.They  were afraid of other animals. They had to seek refuge in the hermitage of sage Saraba.The sage was a true devotee of Lord Shiva.He used to pray Shiva with melodious songs. As he sang a particular raga the snakes were much inspired and they began to dance,. Slowly the serpents became friendly with the sage. They brought water in their mouths for the pooja.They secreted  a special fluid in which the flowers got stuck to their bodies.The sage was much astonished by the service of the snakes.As the sarpas became very close to the sage ,they requested him to help having Darsan of Lord Siva. As requested by the sage Shiva appeared in the form of  a  Kapalika and stayed in the ashram.The music and dance of the snakes continued. The snakes rendered service to the kapalika as they considered him  a Shiva bhakta.Shiva was much pleased with t
Read more