Saturday, February 14, 2015

Accountants are the Culprits behind all frauds in India.

The fraud must have been going on for years and the authorities of banks, RBI, SEBI and Chartered Accountants of India must have been ignoring the same as the accountability for doing their respective duties honestly and diligently has not been adequately fixed.The major culprits in any fraud are the Chartered Accountants whose creativity in producing fraudulent accounts is something extraordinary in India. Same thing happened in Satyam computers Ltd  where fraudulent accounts were prepared and given to banks and other authorities which were accepted without suspecting any irregularities.  All NPAs in banks are also as a result of fraudulent accounts produced conveniently by the Accounting firms. Banks accounts are always window dressed to project a better image and camouflage NPAs with such an ingenuity and precision that the fraud goes unnoticed, non detected for decades. Creative accounting is an established practice and unless and until the Chartered Accountants and auditors are booked and  made accountable the frauds in the system will continue to be prevalent and there is no way of knowing the true position of Financial state of affairs of business establishments. The loss is borne by innocent tax payers of the economy and that is the sad part of it.

Dr.T.V.Gopalakrishnan

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