The Institute of Chartered Accountants of
India (ICAI) is requesting information about the relationships
between Indian accounting firms and their affiliated global
networks as authorities assess the market in the wake of the Satyam
fraud.
The institute has written to 146 firms,
calling for:
- Agreement/contract with the
global network/association; - Terms and conditions for
usage of the global network/association name; - Arrangement for sharing of
fees/profit with other Indian firms with a similar or identical
name and with the global network/association; - Arrangement for sharing of
human resources and infrastructure with other Indian firms with
similar or identical name and with the multinational
entity; - Details of remittances made
to and received from the global network/association; - Partnership deed for the past
five years; - Income-tax assessment orders
for the past three years. If assessment orders have not been
received, then they may submit computation of income and copies of
returns, and; - Copies of letterheads and
visiting cards generally used.
Documents are being collected prior to a
meeting with the Ministry of Corporate Affairs to discuss the
public image of the auditor’s role and other issues related to the
relationship between firms and global networks/associations.
The relationship between firms in India and
global networks/associations is often unclear.
In an interview with The Accountant
in February, ICAI president Amarjit Chopra said multinational firms
should disclose their arrangements with foreign principles, but
they were refusing.
