Inflation is the basic reason for global recession leading to fiscal misfortunes. Too much use of credit cards tends to lead to reckless spending by the public. Lending by banks and financial institutions without scrutinising the viability of the business and willful default in repaying the loan by borrowers cause closure of banks, businesses turning sick, retrenchment of employees and so on. The Satyam scam involving fudging of accounts is an example for economic recession. To mitigate global recession, people in general must limit their excess use of credit cards. Banks must lend loans cautiously and borrowers should honestly repay their debt to banks on time to avail themselves of further loans. Auditors should give qualified audit report instead of clean audit report if they come across any discrepancy .

C. Venkatesh,


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