We are coming across cases of delinquency among auditors with distressing and depressing regularity. The latest to hit the public domain relates to one of the "Big Four", Deloitte Touche Tohmatsu.
P.N.Sudarshan, a Senior Director of this reputed audit firm has recently admitted in a Hyderabad Court that they had succumbed to pressure in inflating the value of Jagati Publications, a media firm owned by Jagan Mohan Reddy, son of a former Chief Minister of Andhra Pradesh.
Sudarshan clarifies that the company's value was overstated to Rs.3500 cr whereas the value was assessed as Rs.2500 cr. He was also under pressure to show the date of his report as Nov 2007 though the assessment was done in April 2008. He was influenced by Jagati's former auditor, Vijay Sai Reddy. The latter is now vice-chairman of Jagati Publications.
It is unfortunate that the reputation of esteemed auditors is really up for sale.
P.N.Sudarshan, a Senior Director of this reputed audit firm has recently admitted in a Hyderabad Court that they had succumbed to pressure in inflating the value of Jagati Publications, a media firm owned by Jagan Mohan Reddy, son of a former Chief Minister of Andhra Pradesh.
Sudarshan clarifies that the company's value was overstated to Rs.3500 cr whereas the value was assessed as Rs.2500 cr. He was also under pressure to show the date of his report as Nov 2007 though the assessment was done in April 2008. He was influenced by Jagati's former auditor, Vijay Sai Reddy. The latter is now vice-chairman of Jagati Publications.
It is unfortunate that the reputation of esteemed auditors is really up for sale.
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