Five years after the collapse of Global Trust Bank,the disciplinary committee of the ICAI has found two of the three auditors,all partners of Price Waterhouse,involved in professional misconduct. The three auditors were partners of Price Waterhouse and the disciplinary committee reports for two auditors indicate a case of professional misconduct, ICAI President Uttam Prakash Agarwal said today.
When contacted,Associate of PW and auditors of GTB,Lovelock and Lewes said,Neither have any of the partners been concerned with the audit of GTB,nor has the audit firm received any recent communication from ICAI on the matter of GTB. Therefore,it would not be appropriate to comment on pending proceedings. Agarwal said the disciplinary committee report would be taken up by ICAIs next council meeting where the auditors would be given a chance to be heard,and added that punitive action against the auditors would be taken only after that. The disciplinary committee, Agarwal maintained,has given the findings to the institute in the GTB case,which relates to three years,from 2000-01 to 2002-03.
He further said while the hearing by the disciplinary committee in case of two auditors had been completed,it had not taken place as far as the third auditor was concerned.
The auditors were accused of professional negligence in under-providing for non-performing assets in the Hyderabad-based GTB.