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: articles on VAT and GST in India :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT RATES :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: form 3cd :: Central Excise rule to resale the machines to a new company
 
 
« ICAI »
 Annual Improvements to IFRS® Standards 2015–2017 Cycle
  Result of the Chartered Accountants Final Examination held in November 2016 and Common Proficiency Test (CPT) held in December 2016 are likely to be declared on Tuesday, the 17th January 2017.
 Result of the Information Systems Audit [ISA] Assessment Test held on 24th December 2016 is likely to be declared on 17th January, 2017.
 Exposure Draft of Ind AS Taxonomy for Comments.
 The Rules regarding Condonation of delay in submission of Forms related to various regulations of the Chartered Accountants Regulations, 1988.
 The Rules regarding Condonation of delay in submission of Forms related to various regulations of the Chartered Accountants Regulations, 1988.
 CPE Events 9th December - 14th December 2016
 Certificate Course on Arbitration, Mediation & Conciliation on 13th, 14th , 15th, 20th, 21st, 22nd, 27th, 28th, 29th January, 2017 and 5th February, 2017 at Indore.
 Exposure Draft of Revised SA 720, “The Auditor’s Responsibilities Relating to Other Information” for Comments
 Announcement of setting up of Branch of WICASA at Satara
 CPE Events 2nd December - 7th December 2016

'ICAI's move will end monopoly of Big 4'
February, 02nd 2009

The ICAI's proposal to restrain foreign firms from joining hands with Indian auditing companies has brought some relief to local
chartered accountants. They observe that this proposal will put an end to the monopoly of the big four (Ernst and Young, Pricewaterhouse, KPMG and Deloitte) which has been a matter of concern to them for over a decade now.

"Whenever a company grows and seeks foreign investment, they are forced to get their books audited by the big four. This compulsion is unwanted and needs to end," says a Hyderabad-based CA. This apart, city CAs feel that this move could also mean more business for local firms that have lost several clients to the big four over the years.

While they are glad that the Institute of Chartered Accountants
has finally woken up to this issue, they feel this move was long overdue. "It took a Satyam for ICAI to get up and take notice of this nexus of the big four. Though in 2002 the body, in its journal, had called this a `circumvention of law in the land' it did nothing to address the matter," said M R Ventakesh, a Chennai-based CA adding that he fears that the proposal might not get regularized considering the big four's significant presence in the ICAI council.

While some, opposing the ICAI move, observe that the international brands have added great value to auditing standards in India, others rubbish this claim completely. They say that it is just the "brand image" of these firms that has helped them land lucrative contracts and not their quality. They argue that the workforce of all these firms is largely local and, therefore, the CAs working for them are as good or bad as the others practising with domestic auditing groups. "Sitting in a building with only a brand name cannot make you any superior or inferior than the rest. The quality of work done by a CA will remain the same irrespective of who the person is working for," adds Venkatesh who has been practising for over 18 years now.

Moreover, CAs observe that with all auditing firms across the country bound by uniform rules and standards set by ICAI, there cannot be much difference in the way these firms (with international tie-ups) work. "There might be some difference in their documentation, but that is all. The procedures followed everyone is much the same," says a city-based CA, pleading anonymity. He adds that the difference in documentation can in no way assure high quality auditing and that it is evident from the Global Trust Bank and the Satyam fiascos.

Not denying negligence on the auditors part in both these cases, G R Kumar, director with RSM Astute Consulting Pvt Ltd, says that it is the local CA population who will be the losers if ICAI's proposal is finally implemented. "The people who have done wrong should be brought to book but keeping away foreign firms from tying up with India companies is not the solution to this," says Kumar who believes that these brands have also helped in enhancing the standard of auditing of local CAs. He also adds that these firms only cater to a certain group of clients and are, therefore, no threat to domestic firms who complain of losing business to the big four.

However, dismissing this argument Ananta Padmanabhan Rao says that in his 25 years of practice he has seen clients switch over to these firms for brand image that his firm failed to provide.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Web Application Development Web based Software Solution Web Application Deployment Web Application Solutions Web Application Software Development Web Application Deployment Web Application Programming Web Application Design and Development

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