Auditor Registration in vadapalani - Filingpoint

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The resignation is a big blow to the Adani group as it loses one of the top audit firms. It also puts off institutional investors who may have invested in its listed companies. Deloitte cited non-fulfillment of its contractual obligations, including those related to the statutory audits of Adani Ports and SEZ, and not being given a broader role in its audit of other listed entities of the Adani Group, as the reason for its resignation.

In May, Deloitte had pointed to certain transactions flagged by US short-seller Hindenburg Research in its report on Adani Ports, and gave only a qualified opinion on the accounts of the company. This led to a plunge in the shares of the conglomerate, wiping off around $150 billion in its market value.

Investors are becoming more wary of companies with a history of auditor resignations. The recent trend is a result of increased awareness amongst retail and institutional investors about the quality of audited financial results. Also, investigating agencies like Sebi and MCA are increasingly going after audit firms that certify accounts that are later found to be fraudulent.

Hence, the resignation of an auditor is always a red flag for investors. They need to assess the surprise element in such cases and evaluate whether they can still invest in a company with the existing management. Also, if the resignation is due to governance issues then it's better to exit such stocks. Investors do valuation of a company on the basis of published data, and if that cannot be trusted then it's best to stay away.

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