ICAI to review financial statements of Yes Bank

NEW DELHI: The Institute of Chartered Accountants of India (ICAI) has decided to review the financial statements of Yes Bank for two financial years — 2017-18 and 2018-19. The accounts will be taken up for review by the institute’s Financial Reporting Review Board (FRRB).
“In case the FRRB finds any material/erious noncompliance, it would refer the case to the director (discipline) of ICAI for initiating action against the auditor under the Chartered Accountants Act, 1949.As the management of the enterprise is concerned, FRRB would inform irregularity to the regulatory body relevant to the enterprise. In case non-compliances observed are not material and do not affect the true and fair view of financial statements, FRRB would appropriately bring the non-compliance to attention of the auditor,” ICAI said.
In recent years, ICAI has been pro-actively taking up review of accounts of companies that have faced problems after repeated complaints by the government that the institute was slow in taking disciplinary action against its members.
Like the Bar Council and the Indian Medical Association, ICAI is the regulator for the profession of chartered accountants, although it cannot act against firms. The slugfest between ICAI and the government over its poor track record had resulted in the establishment of the National Financial Reporting Authority to deal with listed and large companies under its ambit. Government officials, however, said in recent months, ICAI has shown increased pace of action.