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: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: VAT RATES :: articles on VAT and GST in India :: empanelment :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: cpt :: VAT Audit :: form 3cd
« ICAI »
 National Economic Advisory Committee of ICAI invites applications for the research work.
 Regarding Empanelment of professionals for at least fifteen years of continuous practice as a Chartered Accountant with MCA as Mediator or Conciliator.
 CPE Events 24 October - 29 October 2016
 Public Notice in the matter of wrong marketing of ICAI course by private colleges/educational institutes.
 Guidance Note on Audit of Consolidated Financial Statements (Revised 2016) issued by the Auditing and Assurance Standards Board
 Clarifications regarding exemptions in a paper(s) in CA Examinations
 Request to give suggestions on the Draft Rules and Regulations to the Insolvency and Bankruptcy Code, 2016 as issued by the Ministry of Corporate Affairs.
 Hosting of exemption(s) in a paper granted in Intermediate and Final examinations, valid for November 2016
 The Chartered Accountants’ Students Benevolent Fund (CASBF)
 Details of Roll Nos. and Exam Centres of PQC Exams-Nov. 2016
 Group to review and realign the provisions of Chartered Accountants Act, 1949 and the Chartered Accountants Regulations, 1988

ICAI's strategy about auditing
February, 12th 2009

Ernst & young (EY) is perhaps the best-known audit firm around the world. Yet, it can't audit in India. Its rival is PricewaterhouseCoopers (PwC), which operates in India as PriceWaterhouse (PW). Similarly, though Deloitte Haskins & Sells (DH & S) turned into Deloitte Touche Tohmatsu the world over, it remains so here.

The oddities follow from the hostility to the Big Four from the local Indian chartered accountant (CA) firms. The profession is regulated and managed by the Institute of Chartered Accountants of India (ICAI), an organisation that is owned and run by 1.53 lakh Indian accountants, most of whom see the Big Four as bread-snatchers, not unlike in the rest of the world.

More Business Today stories

These accountants elect a Council of 32 from amongst themselves that governs the institute, which has been traditionally hostile to the Big Four. The Council has a disciplinary committee that tries and punishes wayward accountants. The ICAI does little more than fighting elections on a Big-Four-are-bad agenda, says a top shot at one of the Big Four.

Inside the secret world of auditing

The ICAI has refused licences to the Big Four since India closed its doors to foreign accountants at the WTO (then GATT) in the 1980s. PW got its licence before this happened. So did DH & S. EY and KPMG, however, don't have licences. Still, they beat the restriction and audit in India through undeclared tie-ups and affiliations with local Indian CAs. For the record they are management consultants. The non-Big Four resent the less-thanhonest entries. They ask for business as EY, but sign the audits as S.R. Batliboi, says outgoing ICAI President Ved Jain.

Two former partners of PwC sent to police custody

About 80 per cent of the elected 32 reject or approve proposals on one criterion: Implications on the Big Four, worries a non-Big Four council member. Whether a proposal is good for the profession is not their concern; it should not benefit the Big Four in any possible way, he shrugs.

The angst of the non-Big Four is understandable. Forget the global companies, we're steadily losing even our age-old Indian clients, says a three-time Council member. Here's how: On entering India, a global company invariably opts to be audited by the Indian off-shoot of its global Big Four auditor. Then, Indian companies expanding globally choose the Big Four to gain acceptability and status. And most agreements such as for private equity investments or mergers & acquisitions, joint ventures, etc that Indian companies are increasingly entering into define auditors as: One of the Big Four.

Are there more Satyams out there?

We're swimming against the tide all the time, rues the Council member. Why doesn't any one realise that the big being beautiful doesn't make the small ugly? Jain, however, denies the hostility.

Another big grudge of the smaller audit firms is the Big Four's unmatchable advertising spends. The ICAI regulates advertising by auditors, just like lawyers and other professionals are barred from promoting themselves or seeking business.

Again, the Big Four beat the rules with surrogate promotion using their consulting badges. Their incomparable skill, global experience and network fan the frustration, too. But it would seem like it's advantage Big Four. The bulk of the freshmen graduating from the ICAI aspire for careers in the Big Four. Also, more and more small firms would like to become big so that they can sell out to the Big Four or be signed up by them for partnerships at handsome rates.

More India business stories

The ICAI's strategy now is to use PwC's Satyam link as a pressure point to get the WTO to open the doors for Indian accountants to overseas markets in return for admitting the Big Four and other smaller foreign audit firms. That will be a fair deal and help curb hostilities.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

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