Forensic auditors facing fraud charges in India – බැදුම්කර වෝහාරික වාර්තාව හැදු ඉන්දීය සමාගමේ ලොක්කා පන්නයි.. දුෂණ වංචා මාට්ටු වෙලා..
Posted on February 1st, 2020

උපුටා ගැන්ම ලංකාසීනිවුස්

මහ බැංකුවේ බැඳුම්කර නිකුත්කිරීම සම්බන්ධයෙන් වෝහාරික විගණන වාර්තා සකස් කිරීමට භාර දුන් ඉන්දීය සමාගමේ ප්‍රධානියා ධුරයෙන් ඉවත්කර තිබේ.

ඔහුට එල්ල වූ දූෂණ චෝදනා මත තනතුරෙන් ඉවත් කර ඇතැයි ඉන්දීය මාධ්‍ය වාර්තා විසින් වාර්ථා කරයි.

BDO sacks partner in corruption case

Courtesy The Economic Times

Audit firm BDO has expelled a partner after he was accused in an anonymous complaint of demanding bribes while working on a sensitive assignment with the central government’s income tax department.

An anonymous whistleblower accused two BDO executives of demanding bribes from a company that was being investigated by the income tax department in return for altering its report on the company. The company had captured evidence of one of the executives accepting bribes, according to the complainant.

The income tax department had officially assigned BDO the task of assisting in search and seizure operations in September last year, multiple sources told ET. The auditor provides forensic services to the tax department in various locations.

The Netherlands-headquartered BDO that ranks amongst the top 6 auditors globally was intimated of the allegations in April and an inquiry was instituted by appointing a law firm which eventually led to the termination of one of its partners involved in the assignment, the firm’s managing partner Milind Kothari told ET.

This is unprecedented action taken by the firm. This is the first time in the history of the firm that a partner has been expelled,” Kothari said. Kothari said another executive who was also accused in the complaint had voluntarily resigned on June 14.

The expelled partner had refused to cooperate with the law firm that was investigating the allegations, a BDO India spokesperson said in an emailed statement. One of the executives who was contacted by ET claimed that he was being ‘framed’.

No Action from Tax Authorities

The executive said he was being falsely implicated as he was part of a large number of people that were moving from BDO to a rival. This person, who did not wish to be identified, denied any knowledge of the whistleblower complaint or the investigation by the law firm.

The second executive did not respond to requests for comment. The two executives were part of a team that was hired by BDO from a Big 4 accounting firm last year.

This team used to do similar forensic engagements with the tax department for its earlier employer. The task assigned to BDO by the tax department included retrieving data from laptops and hard drives seized during such operations.

Typically, the tax department also farms out the work of data analysis to the auditor appointed to assist in such investigations. The evidence collected is used to prosecute those suspected of crimes of tax evasion.

A team from the audit firm was stationed in the income tax department in Delhi for the assignment that led to the departure of the two executives, according to people directly aware of the situation.

Sources close to the department say that the tax authorities have also investigated the matter and the role of the firm. A BDO spokesperson said the tax department has not taken any action against them and it continues to provide forensic services at various locations to the department.

Emailed queries to the chairman of Central Board of Direct Taxes (CBDT) and Director General Investigations for Delhi Zone at the income tax department did not elicit a response.

The income tax department began aggressively farming out projects to audit firms and external investigating agencies in the aftermath of demonetisation as the drive against black money received impetus from the central government.

Read more at:

Leave a Reply

You must be logged in to post a comment.



Copyright © 2022 All Rights Reserved. Powered by Wordpress