Resignation Of Statutory Auditors – SEBI Steps Up

INTRODUCTION

It seems that adding notes to accounts and qualifying the financial statements are no more a sufficient safety net in the minds of the statutory auditors. There has been a significant rise in the number of instances of abrupt and untimely resignation of statutory auditors from listed entities in recent times. In most of the cases, the statutory auditors have suddenly resigned without completing their assignments for the financial year. Reliance Capital Limited ("RCL"), Reliance Home Finance Limited ("RHFL"), Manpasand Beverages Limited ("MBL"), Fortis Healthcare and Bhushan Steel Limited are some of the major companies where statutory auditors have resigned recently.