‘What are Our Auditors Doing?’: FM on Banks’ Ineffective Authority

“When authority is given to the managements, you are expected to utilise that authority effectively,” Jaitley said.

Finance Minister Arun Jaitley.

(Photo: Reuters)

Amid the ongoing cases of bank frauds, Finance Minister Arun Jaitley on Tuesday, 20 February, addressed the media on the functioning of the finance sector in the country.

The Finance Minister said that on the face of it, the authority of management in the banks has not been used effectively and in the right manner.

When authority is given to the managements, you are expected to utilise that authority effectively and in the right manner. And, therefore, a question for the management itself is, were they found lacking? On the face of it, the answer seems to be that they were. They were also found lacking in being able to check who among them were the delinquents themselves.

Arun Jaitley, Finance Minister

The Finance Minister also expressed his displeasure on the functioning of the auditors. Asking what the country’s auditors are doing, Jaitley said that “if both internal and external auditors have looked the other way or failed to detect the issue, then I am sure that the profession of chartered accountants itself and those who control the discipline of that profession itself will start introspecting and saying what are the legitimate actions that are to be taken.”

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