Aug 18, 2007

PwC India Audit partners in a soup


Sources say that ICAI Council has referred PwC partners to disciplinary
committee in Global Trust Bank case. ICAI Council has found PwC partners prima
facie guilty of professional negligence in GTB case. Three years back when GTB
collapsed RBI has written a firm communication to the institute saying that PWC
has under provided for non performing assets. Later in an RBI inspection, it was
found that the level of NPAs were far more higher than PWC had provided for.
Pricewaterhouse partners were referred for auditing GTB in FY02
and FY03.

Three years ago Global Trust Bank, the Hyderabad based bank, collapsed amid a lot of speculation and lack of credibility - ironically, trust was its middle name. Here is a refresher.