Sebi proposes tighter audits 

Panel Moots Rotation Of Auditors, Half-Yearly Balance Sheets To Prevent Another Satyam 

A SECURITIES & Exchange Board of India (Sebi) panel has recommended rotation of audit partners, selection of the chief financial officer by a companys audit committee and standardisation of earnings disclosure, in an attempt to prevent another accounting scandal such as Satyam Computer. 
The committee has also proposed that companies publish their balance sheets, which show the assets and liabilities, halfyearly , against the present annual system. This would help investors know the companys solvency position, instead of just the profitability which comes out in quarterly results. The committee has invited comments and suggestions on these proposals before a final recommendation. 
The Sebi Committee on Disclosures and Accounting Standards (SCODA), made these recommendations after B Ramalinga Raju, the promoter of the then fourthlargest software company Satyam Computer Services, in January said he had falsified accounts of about a billion dollars. That led to charges of lack of transparency, a flurry of investor suits in the US and accusations that independent directors had failed in their duty to protect investors. Probe by various agencies, including Sebi, is on. 

Economic Times, New Delhi, 15-09-2009