The Companies Act 2013 has placed the onus of detection of financial fraud on the auditors (chartered accountants) and therefore the CAs should measure up to the challenge in the changed scenario, according to Subhodh Kumar Agarwal, president of the Institute of Chartered Accountants of India (ICAI).

He was speaking at the inauguration of the annual convention of the southern regional council of the institute here, which was attended by more than 2,000 CAs from the southern states.

“An auditor is no longer expected to be a watchdog, not even a watchhound, but a bloodhound. Some of the provisions of the new Companies Act are too stringent and we have made an appeal to the ministry to reconsider them,” Agarwal said.

He said the CAs should upgrade their skills and knowledge all the time and the institute would make all efforts to help them. The profession has become more challenging, taxing as well as rewarding under the new regulatory regime, he said and expressed the confidence that the fraternity would take these developments in its stride.

Indian Overseas Bank CMD M. Narendra, who was the chief guest, said the CAs/auditors should play a critical role in enabling banks, especially PSU banks, to compete with private banks and foreign banks.

“We should measure up to global standards, for which we require better asset management, and better governance. The role of auditors in credit audit, portfolio audit and benchmarking cannot be overemphasised,” he said.

He said the IOB was offering Rs 1.25 crore loan to the young CAs under a special scheme to set up the office and embark on the career and the senior CAs can get a higher amount at a concessional rate.

K. Raghu, vice-president of the ICAI, said the profession is getting into the specialisation mode and the institute is offering certificate courses in subjects such as forensic audit to enable the CAs to meet the challenges. (The Hindu)