Govt to review regulations of audit services, floats paper

Audits

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·         Feb 10, 2020 

The ministry of corporate affairs (MCA) has floated a consultation paper seeking to review regulations of audit services and business with a view to enhance independence and accountability of audit firms. It will explore ways to check concentration of audit services with a few firms and to analyse its impact on economy.

“To solicit the views/ comments of other government departments and regulatory agencies on suggestions relating to amendment in existing law to enhance audit independence and accountability,” the objective of the MCA paper states.

Elaborating on the rationale behind the paper states, “The concept of auditor’s independence requires the auditor to carry out his or her work freely, with integrity and in an objective manner. Though auditor is appointed by shareholders, effective power of their appointment and dismissal lies with the management

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