|Chennai||Rs. 29190.00 (3.25%)|
|Mumbai||Rs. 29480.00 (-0.81%)|
|Delhi||Rs. 28900.00 (0%)|
|Kolkata||Rs. 29190.00 (-2.34%)|
|Kerala||Rs. 27400.00 (-0.54%)|
|Bangalore||Rs. 28280.00 (-0.07%)|
|Hyderabad||Rs. 28270.00 (0.14%)|
This refers to the front-page report “Advisory company says vote against reappointment of Infosys auditor” (June 9). In principle, rotation of statutory auditors is a desirable proposition. If a company continues to reappoint an individual or a firm as a statutory auditor for a long time, an auditor’s independence may be at risk. But, in practice, there is little guarantee that the appointment of a new firm of auditors can improve the quality of audit or that the new auditor would function with more autonomy.
In the case of big companies like Infosys, with operations in many locations and in foreign countries, there may be practical difficulties in finding a suitable replacement. Incidentally, the advisory has done its job by protesting against the reappointment. But we must realise that the issue of ensuring complete independence of company’s auditors demands an educative debate and consultation. Investor protection groups and shareholders’ associations should discuss and debate how auditors’ independence can be ensured in the current corporate environment.
Narendra M Apte Pune
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