Adani’s UK units, Adani Ports and Special Economic Zone Limited (APSEZ) and Adani Power Limited (APL), have reportedly dropped Deloitte as their auditor for small firms. The move, which occurred last year, has raised concerns about the independence and transparency of the companies’ financial reporting.
According to a report, the two Adani companies switched from Deloitte to a smaller, less well-known auditor. The report suggests that the switch was made due to cost considerations, as smaller auditors often charge lower fees for their services.
However, this has led to concerns about the independence and quality of the auditing process for Adani’s UK units. It is widely believed that the “big four” accounting firms – Deloitte, KPMG, PwC, and EY – are best equipped to handle the complex financial reporting of large companies, as they have the resources and expertise to ensure that the financial reports are accurate and reliable.
In addition, smaller auditors may not have the same level of independence as the big four firms, which could raise questions about their ability to identify and report any potential financial irregularities or mismanagement. This could result in a lack of transparency and accountability in the financial reporting of Adani’s UK units.
The switch from Deloitte to a smaller auditor also raises questions about the due diligence process that Adani’s UK units underwent when making the change. A company’s choice of auditor is a key decision, as the auditor is responsible for providing an independent assessment of the company’s financial health and stability.
It is unclear how the switch from Deloitte to a smaller auditor will impact Adani’s UK units and their financial reporting going forward. However, it is important that companies take the choice of auditor seriously and consider all relevant factors, including the auditor’s independence, expertise, and reputation, to ensure that their financial reporting is accurate, transparent, and reliable.
In conclusion, the decision by Adani’s UK units to drop Deloitte as their auditor for small firms last year has raised concerns about the independence and transparency of their financial reporting. It is important that companies carefully consider their choice of auditor and ensure that their financial reports are accurate and reliable, in order to maintain the trust and confidence of stakeholders.