Byju’s Auditors Under Scrutiny for Gross Negligence, ICAI President Reveals
In a significant development, the Institute of Chartered Accountants of India ( ICAI ) has unearthed grave lapses in the auditing practices of Byju’s, a leading edutech firm, as revealed by the newly elected President Ranjeet Kumar Agarwal.
Ranjeet Kumar Agarwal, the President of ICAI, disclosed that the auditors of Byju’s are under scrutiny for their negligent conduct. The Financial Reporting Review Board ( FRRB ) will conduct a thorough examination of their actions and may enforce appropriate measures in response.
Additionally, the ICAI is contemplating a review of the audit procedures employed by Paytm, a prominent player in the payments industry. Agarwal emphasized the proactive stance of the ICAI, stating that they are considering investigating the role of auditors associated with Paytm in light of recent events.
Meanwhile, Paytm Payments Bank faces stringent regulatory action from the Reserve Bank of India (RBI). Following multiple compliance breaches, the RBI has issued a directive barring the bank from conducting any business effective March 15th. This action follows previous warnings from the RBI, indicating a progressive tightening of regulations within the payments sector.
Read More: RBI Ban on Paytm: What Paytm Users Need to Know about Their Accounts
In the case of Byju’s, Agarwal outlined a comprehensive review process by the FRRB. This review will assess the conduct of auditors both at an individual and group level, alongside evaluating the oversight of the company’s board. The findings of this multi-stage review will be made public, culminating in appropriate actions against the implicated auditors.
Deloitte, a renowned international auditing firm, previously served as Byju’s statutory auditors. However, amid escalating financial challenges faced by the edutech giant, Deloitte resigned in June 2023, citing prolonged delays in the preparation of financial statements for the fiscal year 2022.
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