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ICAI-Regulation of Foreign Chartered Accountant Firms - Press Information Bureau, Government of India
April, 06th 2012
Regulation of Foreign Chartered Accountant Firms
The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Rajya Sabha that the Indian Chartered Accountant (CA) firms are regulated by the Institute of Chartered Accountants of India (ICAI) in terms of provisions of the Chartered Accountants Act, 1949 and the Rules and Regulations framed thereunder. Further, no CA firms, whether Indian or foreign, can operate in the area of audit/ assurance services in India without being registered with the ICAI. It is, however, possible that several Multinational Accounting Firms may be operating in the country in the fields of audit/ assurance services through Indian Audit Firms/ Members who are registered with the ICAI. 

Action has been initiated against the Statutory Auditors of Satyam Computer Services Limited, namely Price Waterhouse, Bangalore and its members. The names of CA. Pulavarthi Siva Prasad, CA. Chintapatla Ravindernath and CA Srinivas Talluri have been removed from the Register of Members permanently and also a fine of Rs. 5 lac each on all of them has been imposed. The decision on awarding punishment to CA. S. Goplakrishnan, and CA. V.S. Prabhakar Gupta is likely to be taken by the Disciplinary Committee of the ICAI at its next meeting. 

The Minister was replying to a written question whether it is a fact that Indian Chartered Accountant (CA) firms are being regulated by the Institute of Chartered Accountants of India but the foreign CA firms practising in India are not regulated by any regulatory body. 

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