While regulators where sleeping

The press has been slamming the Independent Directors, the CEO and CFO of Satyam for the financial impropriety. If you look at the regulatory framework for listed companies in India as well as in the US, it is quite scary to note that the SEC (with its powerful Sarbanes Oxley) the SEBI and BSE (with a very tight Listing agreement) has not paid any attention to review compliance with the corporate governance codes defined under the regulations. It would be intersting to see how the ICAI peer review would have looked at audit practice for accounts like Satyam, particularly when no defenitive actions were taken after the Global Trust Bank scandal.

So where do investors and users of financial statements derive comfort of Internal Control from?I guess only the quality of entrepreneurs and ethical values can help us on that.

That takes me to my favourite subject (Philosophy), every investor needs to be like a yogi,who is awake in his sleep (people out there please help - is that what the ICAI motto meaning!!).