The government on Wednesday said that though several steps have already been taken to project the Satyam fraud as an isolated case, more action may be taken to rebuild public confidence.
“Recent events have highlighted the fact that despite existing legal provisions which are comparable to the best in the world, situation may arise where swift and proper regulatory action is required,” PC Gupta, minister, corporate affairs, said.
Speaking at the annual function of the Institute of Chartered Accountants of India (ICAI), Gupta pointed out that while the institute has moved fast while taking suitable action, further measures may be required to restore the image of corporate India.
“What is needed is that public confidence should be restored and expectations from the auditor should be flagged so that the chartered accountants, as they have served the nation in previous years so well, continue their steadfast march in the aspect of sustaining public confidence in financial reporting,” the minister said.
The Satyam fraud case has brought to light the loopholes in the accounting standards as well. “This has become all the more important as the volatile nature of today’s capital markets, emergence of knowledge based economy, and technological changes have posed major issues in financial reporting,” Anurag Goel, secretary, corporate affairs ministry, said.