CAG Inaugurates SCOPE Seminar

New Delhi:Mr. Vinod Rai, Comptroller & Auditor General of India said Indian accounting standards are going to converge with the International Financial Reporting Standards by 2011. He urged chief executives of public sector enterprises to review the accounting policies, prepare gap analysis and strategy to gear for compliance with the global standards. He was inaugurating the Interactive Seminar on Corporate Governance and Audit of PSUs – An Appreciation organized by Standing Conference of Public Enterprises (SCOPE), here today.

Mr. Vinod Rai said CAG is prioritizing audits which have larger impacts in terms of aiding managements in reviewing its practices and achievements. The focus of audit has shifted to the evaluation of the adequacy and effectiveness of risk assessment, soundness of the systems of internal control to ensure achievements of objectives.

Mr Sarthak Behuria, Chairman SCOPE, said public sector has not only withstood the scrutiny and rigorous tests set by statutory guidelines and other stipulations, but has emerged stronger by increasing pace of reforms. He said both the PSUs and the government have to work in tandem to create a conducive atmosphere where PSEs are able to perform to their optimum efficiency level. He hoped that the interactive meet would provide an opportunity for better appreciation of the issues involved so that systems are further streamlined to conform to the best practices in the world.

Dr S.M. Dewan, Director General, SCOPE in his welcome address appreciated positive role of CAG in the period of transition from controlled economy with PSEs accountable to government as a singular owner to shift to multiple stakeholder needs. He said PSEs are respected for their audit and accounting system. Whenever they go for listing or any other collaboration, JVs etc. due to the fact that they have undergone scrutiny of CAG and therefore their accounts reports are taken as correct and sacrosanct.

Mr. K.L. Dhingra, Chairman, HUDCO in his vote of thanks said that it is a matter of great satisfaction for public sector executives that there is now better appreciation of issues affecting competitiveness of PSEs. The Interactive Meeting is being attended by over 50 Chief Executives and Finance Directors of PSEs and 20 Members of the Audit Board.