CitiBank Fraud

In a recent Citibank fraud ,the bank is expected to have robust computerised information system, enterprise risk management, application of BASEL norms. The foreign-listed bank is regulated by Sarbanes Oxley Act of 2002 in the US and its Indian counterpart is required to comply with the corresponding SEBI Clause 49 Listing Agreement. The bank is regulated by SEBI and the Reserve Bank of India (RBI) and is to be inspected and audited by senior management, internal audit and I-T audit teams, accredited information system auditors as well as external statutory auditors.

Then what went wrong that the fraud remain undetected?

I believe the spirit to hear the truth was missing. I believe that  there are CA's (auditors) in the economy that can give you your desired sweet and goody goody audit report but there are also CA's in the market that can go to depth of any matter and warn against the most disguised transactions and dealing.

And the management is very well aware of the two kind of CA's but they do not really want to hear the bitter truth, rather the want the formality to have CA certified audit report completed at the earliest.

I believe that if auditors are given powers and freedom to express in true sense than these kind of frauds cpuld be avoided from spoiling the image of Indian Accounting.