Finance Minister Jaswant Singh on Friday indicated radical changes in auditing norms including disqualification of auditors if they are found to have 'financial relationship' with companies as suggested by the Naresh Chandra panel.
"The Naresh Chandra committee has come out with a forward looking criteria for improving the credibility of audit and reliability of company accounts," he said indicating stricter norms for auditing and corporate governance.
Speaking at the convention of Chartered Accountants' Action Committee for Level Playing Field, he said the committee had suggested that auditors should be disqualified if they have financial relationship like taking loans and guarantees from a company.
After assuming office, Singh had appointed the Kelkar task force for direct and indirect tax reforms and Naresh Chandra panel for improving audit and corporate governance in Indian companies.
Stressing that CAs have an important role to play, he said based on certification of CAs, investor community assesses the company's financial performance.
Singh said there is no reason to believe that the knowledge-based service of CAs would not demonstrate the superiority as shown by the IT and biotech sectors.
He said the profession needs to inculcate self-respect and self-confidence if it has to progress. Singh assured that government would try to ensure level playing field to this profession.
The Swadeshi Jagaran Manch co-convenor, S Gurumurthy, said Indian CAs are not organised to prove themselves in the global arena.
"The laws are different in India and other developed nations. So Indian CAs could not excel in those nations," Gurumurthy said.
He said the government should not allow entry of foreign accounting and audit firms unless those nations also open up their market for Indian firms.
The SJM leader said that India opened up its market for various services including that for accounting profession, well ahead it was taken up at the WTO.
