Auditors are considered market fiduciaries, because they validate the fairness of financial statements. Resignation of auditors and frequent changes in auditors are considered early warning signals by most investors. Even so, we ask if the audit industry considers its responsibility towards a company’s stakeholders while writing out scripted audit reports. The market frustration over the lack of accountability of the audit industry led to SEBI using its discretionary powers o

Given the damage that the Infosys episode has caused, one can argue that the company should have been more forthcoming. There were occasions when the company could have made a full disclosure and if nothing else issued a holding statement. It could have done so when the letter was first received or after the board meeting where it was decided to investigate this fully or when tasking its auditors to do so. But conversely, there is such a thing as opening yourself too much thr