http://www.tremeritus.com/2015/05/08/concerns-of-letting-in-more-accountants-from-india-to-sg/
[h=2]Concerns of letting in more accountants from India to SG[/h]
May 8th, 2015 |
Author: Editorial
According
to an Indian mainstream news report last month (‘India,
Singapore working on mutual recognition agreements‘), Indian chartered
accountants and nurses will soon get easy access to work in Singapore, as the
two countries are finalising mutual recognition agreements.
Mutual recognition agreements (MRAs) help to pave the way for recognition of
professional body of one country by the other.
“We already have Mutual Recognition Agreements (MRAs) going on for Singapore.
In nursing we have finished MRAs. The other MRAs on chartered accountancies are
under negotiations,” Commerce Secretary of India, Rajeev Kher, told the Indian
media.
With these agreements, chartered accountants and nurses of Singapore too
would find it easy to work in India, the Commerce Secretary said.
However, it’s not known how many Singaporean accountants would seriously
consider to seek jobs in India given that the average pay of accountants in
India is 11 times less than what accountants can get in Singapore (‘More Indian accountants and nurses to work in SG‘).
Heavy corruptions in India
With regard to the MRA recognizing chartered accountants in India and thereby
enabling them to work in Singapore, there are also concerns among Singaporean
netizens of increase in corruptions in Singapore, given that accountants deal
closely with books of companies, including auditing work.
Some TRE readers commented:
OMG:
May 6, 2015 at 5:53 pm (Quote)
As for accountants, they are the best in corruption practices……just look at
how corrupted India is…
Chris K:
May 6, 2015 at 4:41 pm (Quote)
Because of sub-standard degree and qualifications, can’t get the numbers
correct. Because of fake degrees and qualifications, cheating is the path of
resistance so fudge the company accounts. Sell Singapore company stocks – in
time, you cannot trust their financials.
VTO VTO:
May 6, 2015 at 5:34 pm (Quote)
We have Mr Peanuts to thank for. He had this agreement with India having more
Indian nationals working here didn’t he? He couldn’t back out from this blunder
and had recently been pressured by India to satisfy the agreement hence
inevitably we’ll have an exodus of them landing on our shores soon.Besides
fudging accounts by accountants and accidental deaths by nurses, those alive
will have to face the reality of being replaced and thus unemployed. Be prepared
to take up taxi or security guard licence and earn some money to survive till we
land ourselves another job.
In fact, just early this year, India’s anti-corruption agency, CBI, unearthed
a major bribery scandal in the income tax department’s investigation wing of
India (‘CBI
unearths bribery scandal in I-T department, arrests senior official, chartered
accountants‘).
CBI arrested a tax commissioner of the department, two chartered
accountants and a businessman while another IRS officer and
several middlemen were being questioned. CBI said that it was investigating a
larger conspiracy where income tax officials, chartered
accountants and businessmen joined hands to settle income tax
investigations against companies and individuals for payment of huge amounts in
bribe.
CBI recovered documents during searches which showed that an IRS officer took
Rs1,000,000 (S$21,000) from a businessman to settle a case where the income tax
department had conducted raids and recovered gold, silver and other articles
from the businessman earlier.
The Times of India reported that the businessman was seeking undue favours
from income tax officials with their chartered
accountants acting as middlemen.
PwC of India fined by US SEC
In 2009, a corporate scandal involving IT giant Satyam Computer Services
rocked both India and New York. Satyam is listed on the New York Stock
Exchange.
At the time, Satyam Chairman Ramalinga Raju confessed that the company’s
accounts had been falsified. The global corporate community was shocked and
scandalised when Ramalinga resigned on 7 January 2009 and confessed that he had
manipulated the accounts by US$1.47-Billion. Last month, he was finally
convicted with 10 other members [Link].
PricewaterhouseCoopers was the statutory auditor of Satyam Computer Services
when the report of scandal in the account books of Satyam Computer Services
broke. The Indian arm of PwC was fined US$6 million by the SEC (US Securities
and Exchange Commission) for not following the code of conduct and auditing
standards in the performance of its duties related to the auditing of the
accounts of Satyam Computer Services.
This was what SEC said about the India-based PwC with regard to the scandal.
It said that the Indian PwC auditors were sanctioned for “repeatedly conducting
deficient audits of the company’s financial statements and enabling a massive
accounting fraud to go undetected for several years”:
SEC Charges
India-Based Affiliates of PWC for Role in Satyam Accounting
Fraud
Washington, D.C., April 5, 2011 – The Securities and Exchange
Commission today sanctioned five India-based affiliates of
PricewaterhouseCoopers (PwC) that formerly served as independent auditors of
Satyam Computer Services Limited for repeatedly conducting deficient audits of
the company’s financial statements and enabling a massive accounting fraud to go
undetected for several years.
The SEC found that the audit failures by the PW India affiliates – Lovelock
& Lewes, Price Waterhouse Bangalore, Price Waterhouse & Co. Bangalore,
Price Waterhouse Calcutta, and Price Waterhouse & Co. Calcutta – were not
limited to Satyam, but rather indicative of a much larger quality control
failure throughout PW India.
Additional Materials
The PW India affiliates agreed to settle the SEC’s charges and pay a $6
million penalty, the largest ever by a foreign-based accounting firm in an SEC
enforcement action.
* * *
In a related settlement today, Satyam agreed to settle fraud charges, pay a
$10 million penalty, and undertake a series of internal reforms. Since the fraud
came to light, the India government seized control of the company by dissolving
its board of directors and appointing new government-nominated directors, among
other things. Additionally, India authorities filed criminal charges against
several former officials as well as two lead engagement partners from PW
India.
“PW India violated its most fundamental duty as a public watchdog by failing
to comply with some of the most elementary auditing standards and procedures in
conducting the Sataym audits. The result of this failure was very harmful to
Satyam shareholders, employees and vendors,” said Robert Khuzami, Director of
the SEC’s Division of Enforcement.
Cheryl Scarboro, Chief of the SEC’s Foreign Corrupt Practices Act Unit,
added, “PW India failed to conduct even the most fundamental audit procedures.
Audit firms worldwide must take seriously their critical gate-keeping duties
whenever they perform audit engagements for SEC-registered issuers and their
affiliates, and conduct proper audits that exercise professional skepticism and
care.”
The SEC’s order instituting administrative proceedings against the firms
finds that PW India staff failed to conduct procedures to confirm Satyam’s cash
and cash equivalent balances or its accounts receivables. Specifically, the
order finds that PW India’s “failure to properly execute third-party
confirmation procedures resulted in the fraud at Satyam going undetected” for
years. PW India’s failures in auditing Satyam “were indicative of a quality
control failure throughout PW India” because PW India staff “routinely
relinquished control of the delivery and receipt of cash confirmations entirely
to their audit clients and rarely, if ever, questioned the integrity of the
confirmation responses they received from the client by following up with the
banks.”
* * *
In a related proceeding, the PW India affiliates also reached a
settlement with the Public Company Accounting Oversight Board (PCAOB) in which
the PW India firms have been censured and agreed to extensive undertakings
substantially similar to those set forth in the SEC administrative order.
Additionally, Lovelock & Lewes and Price Waterhouse Bangalore have agreed to
pay the PCAOB a $1.5 million penalty for their violations of PCAOB rules and
standards in relation to the Satyam audit engagement.
The Commission acknowledges the assistance of the PCAOB. The SEC’s
investigation is continuing.
So, do you think Singapore should open its door wide to let more accountants
from India to work here?
Tell us what you think.
[h=2]Concerns of letting in more accountants from India to SG[/h]
May 8th, 2015 |
Author: Editorial
to an Indian mainstream news report last month (‘India,
Singapore working on mutual recognition agreements‘), Indian chartered
accountants and nurses will soon get easy access to work in Singapore, as the
two countries are finalising mutual recognition agreements.
Mutual recognition agreements (MRAs) help to pave the way for recognition of
professional body of one country by the other.
“We already have Mutual Recognition Agreements (MRAs) going on for Singapore.
In nursing we have finished MRAs. The other MRAs on chartered accountancies are
under negotiations,” Commerce Secretary of India, Rajeev Kher, told the Indian
media.
With these agreements, chartered accountants and nurses of Singapore too
would find it easy to work in India, the Commerce Secretary said.
However, it’s not known how many Singaporean accountants would seriously
consider to seek jobs in India given that the average pay of accountants in
India is 11 times less than what accountants can get in Singapore (‘More Indian accountants and nurses to work in SG‘).
Heavy corruptions in India
With regard to the MRA recognizing chartered accountants in India and thereby
enabling them to work in Singapore, there are also concerns among Singaporean
netizens of increase in corruptions in Singapore, given that accountants deal
closely with books of companies, including auditing work.
Some TRE readers commented:
OMG:
May 6, 2015 at 5:53 pm (Quote)
As for accountants, they are the best in corruption practices……just look at
how corrupted India is…
Chris K:
May 6, 2015 at 4:41 pm (Quote)
Because of sub-standard degree and qualifications, can’t get the numbers
correct. Because of fake degrees and qualifications, cheating is the path of
resistance so fudge the company accounts. Sell Singapore company stocks – in
time, you cannot trust their financials.
VTO VTO:
May 6, 2015 at 5:34 pm (Quote)
We have Mr Peanuts to thank for. He had this agreement with India having more
Indian nationals working here didn’t he? He couldn’t back out from this blunder
and had recently been pressured by India to satisfy the agreement hence
inevitably we’ll have an exodus of them landing on our shores soon.Besides
fudging accounts by accountants and accidental deaths by nurses, those alive
will have to face the reality of being replaced and thus unemployed. Be prepared
to take up taxi or security guard licence and earn some money to survive till we
land ourselves another job.
a major bribery scandal in the income tax department’s investigation wing of
India (‘CBI
unearths bribery scandal in I-T department, arrests senior official, chartered
accountants‘).
CBI arrested a tax commissioner of the department, two chartered
accountants and a businessman while another IRS officer and
several middlemen were being questioned. CBI said that it was investigating a
larger conspiracy where income tax officials, chartered
accountants and businessmen joined hands to settle income tax
investigations against companies and individuals for payment of huge amounts in
bribe.
CBI recovered documents during searches which showed that an IRS officer took
Rs1,000,000 (S$21,000) from a businessman to settle a case where the income tax
department had conducted raids and recovered gold, silver and other articles
from the businessman earlier.
The Times of India reported that the businessman was seeking undue favours
from income tax officials with their chartered
accountants acting as middlemen.
PwC of India fined by US SEC
In 2009, a corporate scandal involving IT giant Satyam Computer Services
rocked both India and New York. Satyam is listed on the New York Stock
Exchange.
At the time, Satyam Chairman Ramalinga Raju confessed that the company’s
accounts had been falsified. The global corporate community was shocked and
scandalised when Ramalinga resigned on 7 January 2009 and confessed that he had
manipulated the accounts by US$1.47-Billion. Last month, he was finally
convicted with 10 other members [Link].
PricewaterhouseCoopers was the statutory auditor of Satyam Computer Services
when the report of scandal in the account books of Satyam Computer Services
broke. The Indian arm of PwC was fined US$6 million by the SEC (US Securities
and Exchange Commission) for not following the code of conduct and auditing
standards in the performance of its duties related to the auditing of the
accounts of Satyam Computer Services.
This was what SEC said about the India-based PwC with regard to the scandal.
It said that the Indian PwC auditors were sanctioned for “repeatedly conducting
deficient audits of the company’s financial statements and enabling a massive
accounting fraud to go undetected for several years”:
SEC Charges
India-Based Affiliates of PWC for Role in Satyam Accounting
Fraud
Washington, D.C., April 5, 2011 – The Securities and Exchange
Commission today sanctioned five India-based affiliates of
PricewaterhouseCoopers (PwC) that formerly served as independent auditors of
Satyam Computer Services Limited for repeatedly conducting deficient audits of
the company’s financial statements and enabling a massive accounting fraud to go
undetected for several years.
The SEC found that the audit failures by the PW India affiliates – Lovelock
& Lewes, Price Waterhouse Bangalore, Price Waterhouse & Co. Bangalore,
Price Waterhouse Calcutta, and Price Waterhouse & Co. Calcutta – were not
limited to Satyam, but rather indicative of a much larger quality control
failure throughout PW India.
Additional Materials
The PW India affiliates agreed to settle the SEC’s charges and pay a $6
million penalty, the largest ever by a foreign-based accounting firm in an SEC
enforcement action.
* * *
In a related settlement today, Satyam agreed to settle fraud charges, pay a
$10 million penalty, and undertake a series of internal reforms. Since the fraud
came to light, the India government seized control of the company by dissolving
its board of directors and appointing new government-nominated directors, among
other things. Additionally, India authorities filed criminal charges against
several former officials as well as two lead engagement partners from PW
India.
“PW India violated its most fundamental duty as a public watchdog by failing
to comply with some of the most elementary auditing standards and procedures in
conducting the Sataym audits. The result of this failure was very harmful to
Satyam shareholders, employees and vendors,” said Robert Khuzami, Director of
the SEC’s Division of Enforcement.
Cheryl Scarboro, Chief of the SEC’s Foreign Corrupt Practices Act Unit,
added, “PW India failed to conduct even the most fundamental audit procedures.
Audit firms worldwide must take seriously their critical gate-keeping duties
whenever they perform audit engagements for SEC-registered issuers and their
affiliates, and conduct proper audits that exercise professional skepticism and
care.”
The SEC’s order instituting administrative proceedings against the firms
finds that PW India staff failed to conduct procedures to confirm Satyam’s cash
and cash equivalent balances or its accounts receivables. Specifically, the
order finds that PW India’s “failure to properly execute third-party
confirmation procedures resulted in the fraud at Satyam going undetected” for
years. PW India’s failures in auditing Satyam “were indicative of a quality
control failure throughout PW India” because PW India staff “routinely
relinquished control of the delivery and receipt of cash confirmations entirely
to their audit clients and rarely, if ever, questioned the integrity of the
confirmation responses they received from the client by following up with the
banks.”
* * *
In a related proceeding, the PW India affiliates also reached a
settlement with the Public Company Accounting Oversight Board (PCAOB) in which
the PW India firms have been censured and agreed to extensive undertakings
substantially similar to those set forth in the SEC administrative order.
Additionally, Lovelock & Lewes and Price Waterhouse Bangalore have agreed to
pay the PCAOB a $1.5 million penalty for their violations of PCAOB rules and
standards in relation to the Satyam audit engagement.
The Commission acknowledges the assistance of the PCAOB. The SEC’s
investigation is continuing.
from India to work here?
Tell us what you think.
