Global Trust Bank issue back to haunt PwC!

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Global Trust Bank issue back to haunt PwC!

Three years ago, it threatened to tarnish the reputation of PricewaterhouseCoopers, one of the biggest accounting firms in the world, and now it is back. We are talking about Global Trust Bank, or GTB, where the RBI found PricewaterhouseCoopers, or PwC, wanting in its audit, reports CNBC-TV18.

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Three years ago, it threatened to tarnish the reputation of PricewaterhouseCoopers , one of the biggest accounting firms in the world, and now it is back. We are talking about Global Trust Bank , or GTB , where the Reserve Bank of India found PricewaterhouseCoopers, or PwC , wanting in its audit, reports CNBC-TV18.
 
The GTB case that shook the accounting world three years ago is back to haunt the accounting giant PwC.

The ICAI 's highest decision making body, that is the Central Council will decide this week whether partners at PwC were prima facie guilty of gross negligence and professional misconduct while auditing the books of the GTB over three years ago. If the council members conclude that there is a prima facie case, then they will refer the case to its five member disciplinary committee for an in-depth investigation.
 
The GTB had collapsed exactly three years ago, when there was a run on it. The Reserve Bank of India had then stepped in and immediately merged the bank into the Oriental Bank of Commerce . But the apex bank referred the GTB's auditors PwC to ICAI for further action.
 
In its communication then to the ICAI, the apex bank had alleged that the GTB auditors had failed to adequately point out in its audit report about the high levels of NPA. Four partners at the firm have been made respondents in this case for their audit work spanning over three years. And for the next few days, it will be an anxious wait as the ICAI ponders over the case.