From The President

Dear Professional Colleagues,

I write this communication to you having returned from the
42nd Residential Refresher Course (RRC) at Goa. More than 230 delegates from all
over the country participated in the deliberations. The experience was
undoubtedly enriching. It must however be accepted that the shadow of Satyam
loomed large upon the minds of participants.

The editorial deals with the various issues that arise in
regard to the audit function, the perception of the public regarding auditors in
light of the Satyam episode. I will therefore refrain from dwelling on the
subject. I must however state that in my view the situation is serious. Not only
should the ICAI act quickly but it must be seen to act. I am conscious that
there are, and there will be limitations on the speed and extent of actions of
the Institute. I also recognize that a regulator must act with responsibility
and that taking any step without the requisite evidence may cause injustice. I
only hope that these facts are brought to the notice of the public.

The RRC ended on 26th January, 2009 and we rendered the
national anthem. Every time the national anthem is rendered or recited, there is
a surge of patriotism. We feel proud to be Indians. Fifty-nine years ago we
constituted ourselves into a republic. Our nation has now entered the diamond
jubilee year. The next year we will be celebrating the diamond jubilee of our
republic. In the last fifty-nine years how have we fared in regard to the goals
we set out to achieve ?

The Preamble to the Constitution reads

WE, THE PEOPLE OF INDIA, having solemnly resolved to
constitute India into a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC and to
secure to all its citizens :

Fifty-nine years ago we promised our citizens justice,
liberty, equality and fraternity. Let us look at our performance in each one of
these parameters.

Justice — It is said that justice delayed is justice denied.
On that test alone we have failed miserably. Let alone the time lag, many forums
of redressal are simply not accessible to a vast majority. Judicial
pronouncements are delivered after decades, but many a time do not result in
justice because there is no action by the executive. While it is true that it is
this pillar of democracy that has suffered the minimum decay, justice as
contemplated by the founding fathers of the Constitution is still a mirage.

Liberty — Do our citizens have liberty of expression ? On the
contrary, we seem to have become extremely intolerant. Those whose beliefs do
not conform to beliefs of groups who are powerful, are throttled sometimes
physically. The standards of public morality are set by these groups. They wield
this power because some of them occupy high public office, or on account of
brute force of a mob. Women who constitute half of our citizens have severe
limitations on their freedom and the State seems to be helpless.

Equality — After six decades, disparities both social and
economic persist. On the social front there has been some degree of alleviation,
but on the economic front the gap has widened. Even opportunities are unequal.
Primary education which would have acted as a leveller is not available to vast
majority. As far as higher education is concerned, reservation was expected to
provide relief, but it has been substantially abused, and has created far more
acrimony than the benefits it has bestowed.

Fraternity — We call ourselves Indians, but permit
politicians to divide us on lines of religions, languages, and regional
aspirations. Fraternity is displayed only when a crisis looms large and is
forgotten the moment it blows over.

So our report card is rather dismal. What then is the
solution ? The solution lies in asking questions both to ourselves and the
powers that be and seeking answers again and again from ourselves and those who
are responsible for taking action. For too long we have remained silent. We seem
to have forgotten that 59 years ago we constituted ourselves into a democratic
republic. A democracy can survive and flourish only if every citizen
participates.

So the need is to participate in the democratic process and
it is not limited to elections. It means being accountable to society and
holding others accountable. It is not possible for an individual to carry on
this activity as a sustained programme. In the aftermath of the 26/11 tragedy
very senior and responsible citizens have formed a platform ‘Citizens take
Charge’. It seeks to ask questions and elicit an account from ourselves and the
authorities. Vigilance should become a habit. All of us should join either this
or any similar forum. The name of the forum is not important, the cause that it
promotes is.

I am an eternal optimist. This country has had a glorious
past, and if all of us take a step forward together, I am sure it will have a
brilliant future.