News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Professional Updates »
 Restoration of Membership/COP of ICAI
 Appeal to contribute in ICAI Covid 19 Relief Fund
 IMPORTANT ANNOUNCEMENT - POSTPONEMENT OF CHARTERED ACCOUNTANT EXAMINATIONS, MAY 2020
 COVID-19: Important Announcement
 Lets' Stop COVID-19, Check out Today's Online Resources for you
 Covid-19: Important Announcement for Members
 Covid-19: Important Announcement for Members
 Preventive measures to be taken to contain the spread of Noveacl Coronavirus (COVID-19)
 Exemption from Completion of Management and Communication Skills Course (MCS Course) & Advanced Information Technology Training (Adv.ITT) to appear in Final May 2020 Examination
 Exemption from Completion of Orientation Course (OC) and Information Technology Training (ITT) before admission in Practical Training on or before 30th April, 2020.
 Request for Information for comprehensive review of IFRS for SMEs Standard issued by the IASB for comments.

ICAI favours 3-year rotation of auditors
January, 30th 2009

The self regulatory body for auditors, Institute of Chartered Accountants of India (ICAI) is pushing for compulsory rotation of auditors by companies amid mounting pressure from local financial institutions. A high-powered committee is currently examining the option and a decision will be taken, based on their recommendation, very soon, ICAI president Ved Jain told ET.

To begin with, ICAI is likely to ask auditors of top-listed companies to retire after a three-year term, he said. At the next stage, a mandatory rotation of auditors would be proposed for all public interest entities like private banks and insurance companies, Mr Jain said.

Currently, only public sector banks are required to rotate auditors, appointed from among RBI-empanelled list of audit firms, but there is no compulsion on private banks and insurance companies to follow the practice.

Industry insiders, however, feel that even if ICAI makes rotation of auditors mandatory, it may not help unless it is enshrined in the Companies Act or enforced as a regulator requirement by Sebi and Company Law Board. If ICAI can make it mandatory for its members to retire every three years, auditors will not have a choice but to adhere to it. But an amendment to the Companies Act will institutionalise the process, a chartered accountant said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting