Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: list of goods taxed at 4% :: empanelment :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ACCOUNTING STANDARD :: due date for vat payment :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: VAT Audit :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS
 
 
News Headlines »
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns
 Government may set threshold for probe into deposits to prevent harassment of taxpayers

ICAI proposal may hit audit firms here
January, 28th 2009

Indian audit firms, that informally work as the audit arms of big foreign accounting firms, may soon have to sever their foreign affiliations, if accounting and auditing rule maker ICAI has its way.

In what could be a fall-out of the Satyam account fabrication episode, the Institute of Chartered Accountants of India (ICAI) has started pitching for restraining all foreign firms from associating with domestic firms that do statutory audits
in India.

Since foreign accounting firms cannot do audit work in India because the country has not yet opened up this sector to foreign firms under WTO discussions, they tie up with a local audit firm to offer this service to their clients. Another reason for the tie-up is that an audit firm that advises a client, cannot do statutory audit for the same client due to conflict of interest issues.

The ICAIs proposal, if vetted by the government, may create a major turn-around in the operations of the so-called Big Four league of audit consultancy firms in India a group which comprises Ernst and Young, KPMG, Deloitte and Price WaterhouseCoopers (PwC). Even as the Big Four league does not do audit in their names, ICAI wants to put an end to such business associations. What cannot be done directly, should not be done indirectly, said Ved Jain, president of ICAI.

Mr Jains concern, which too stems from the WTO perspective, restricts foreign accounting firms from doing audit work in India. These firms, which are officially entitled to do management consultancy work in India, have tied-up with locally registered firms to do audit in the latters name. Management consultancy is a very loosely used term, and often involves auditing work, said Mr Jain.

If ICAIs view is accepted by the government, foreign consultancy firms like Ernst & Young, KPMG and Deloitte may lose their audit associations here. In India, Ernst & Young has tied-up with SR Batliboi & Co, KPMG with BSR & Co and Deloitte with CC Choksi & Co as their audit affiliate. Price Waterhouse is the Indian audit arm of its global parent PwC, and all its employees are Indians.

An audit partner with one of the Big Four audit firms said on condition of anonymity that under the present set up, foreign consultancies can share in common with its Indian affiliate, 20% of its partners. Experts said that this move is highly detrimental for the independence of the auditors.

They said while management consultants are required to safeguard the interests of their clients, auditors job is to certify financial statements as a true and fair account of the companys health. However, ICAIs move to seek a bar on foreign consultancy firms doing audit through their Indian dummy faces, is not going to be an easy task, a government official, who asked not to be named, said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions