Through the third eye

Auditing pains

The Satyam scam is making companies nervous as auditors have become more inquisitive while verifying book entries. Some auditors have already started going to their clients’ banks personally to make sure that certifying the client’s accounts won’t get them into trouble later. With auditors, expected to be unbiased in their work, getting more sceptical about the internal practices of companies, the latter are getting impatient, executives in the accounting fraternity say. The Satyam scandal has shaken the cosy relationship between company management and auditors as chartered accountants resort to “defensive auditing”, employing more forensic skills. Nothing like a shock to stir things up.

Source: Economic Times, Editorial