Letter to the Editor

Dear Sir,

“Auditor - Whether a Watchdog or a Bloodhound “

I am in agreement with the views expressed in your Editorial of June, 2023 issue of BCAJ, entitled, “CA- From a Watchdog to a Bloodhound” and the penultimate paragraph of “ Namaskar” column by  Shri C. N. Vaze.

The responsibilities cast on a CA as the Statutory Auditor of a Company are very extensive and excessive, and ever increasing, enough to deter a CA from undertaking the vast and excessive responsibilities  cast on the Statutory Auditor under the Companies Act, 2013.

All the Regulators and Enforcement Agencies should understand that the Auditor’s Responsibility ends with making appropriate disclosures in the Audit Report and it’s Annexures. It is upto various Stakeholders to read, understand and take the necessary remedial action(s).

The Auditor should not be made a scapegoat for the lack of knowledge, understanding and necessary timely action on the part of the Management and various other Stakeholders.

Further, requiring the Auditor to Report on every contravention  of various Laws or Regulations  to various Law Enforcement Agencies is neither feasible nor practical.

An Auditor is not a Bloodhound.

And now, on top of everything, comes the latest Notification under the PMLA. One really wonders why the legal profession has not been brought under the ambit of the said PMLA Notification, as the lawy