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June 22, 2011


Moorkh Adhiraaj

Based on my experience with auditors (though with SMEs), it's almost foolish to assume that auditors add any value to the process.

They just don't have the human resources (number and, in some cases, qualified accountants), motivation and time to do the job that statutory auditors were required to do when the "job profile" was first created.

With shareholders unwilling to pay what it needs to have a good auditor do the good job expected of them, we should expect no improvement in the short run.

A probable solution may be that listed companies be made to pay a fixed percentage of sales turnover to the stock exchanges as part of the listing fees and then stock exchanges reimburse the auditors.

The old model of a company paying the auditor hasn't worked and need to be changed.


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