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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« ICAI »
 Launch of 1st Batch of Educational Course by ICAI Registered Valuers Organsiation (ICAI RVO) at ICAI Bhawan, Sector- 62, Noida from 2nd June, 2018 to 24th June, 2018.
 Application Form for the Information Systems Audit (ISA) Assessment Test - June, 2018.
 Information System Audit - Assessment Test (ISA - AT), June 2018
 FAQs on SA 570 (Revised), ‘Going Concern’ (Applicable for audits of financial year 2017-18)
  Exposure Draft of Standard on Internal Audit (SIA), Planning the Internal Audit Assignment (Comments to be received by June 15, 2018)
 Four Weeks Residential Programme to be held from 4th June, 2018 to 1st July, 2018 at Centre of Excellence, Jaipur for Men Participants only.
 Inputs/ Suggestions Invited on Draft Revised Syllabus for the Post Qualification Course on Information Systems Audit formulated by Digital Accounting and Assurance Board of ICAI latest by 31st May, 2018.
 Exposure Draft of Accounting Standard (AS) 109, Financial Instruments (Comments to be received by June 30, 2018)
 Register for Exclusive First Batch of Spanish Language (60 Hours) for ICAI Members and Students at Delhi and Mumbai - 4th June 2018 - Last Date of Enrolment is 21st May 2018
 FAQ on accounting treatment of increase in liability due to enhancement of the gratuity ceiling.
 SAFA accepts recommendation of the ICAI for forming SAFA Women Empowerment Committee and replicating the digital initiatives of ICAI.

Auditor rotation must for select unlisted public, private companies
April, 11th 2014

The Corporate Affairs Ministry has delivered a “mixed bag” for the audit profession in its new auditor rotation rules.

The CA Institute, regulator of the audit profession in India, had pitched for audit firm and audit partner rotation only for the top 100 listed companies.

While excluding small companies and one-person company from the purview of auditor rotation, the Corporate Affairs Ministry has mandated audit firm and audit partner rotation for all listed companies and certain unlisted public companies and certain private companies.

“I am not disappointed. We were keen that private companies in India be kept out of auditor rotation. But the Ministry has thought otherwise.

Anyway, they have to some extent addressed our concerns and kept a threshold even for the unlisted public companies and private companies,” K Raghu, President, Institute of Chartered Accountants of India (ICAI), told Business Line in his initial reactions to the new rules.

He also expressed satisfaction over the Ministry’s decision to refrain from notifying the national financial reporting authority.

For the first time, India is introducing mandatory auditor rotation — both at an individual auditor level and at the audit firm level. The implementation of this norm is expected to enhance auditor independence and audit quality.

The new rules released today by the Corporate Affairs Ministry said that rotation rules will also apply to public companies having a paid up share capital of ?10 crore or more, private companies having a paid-up capital of ?20 crore or more.

Auditor rotation rules will also apply for unlisted public companies with less than ?10 crore paid-up capital or private companies with paid-up capital of less than ?20 crore, but who have borrowed more than ?50 crore.

“The new auditor rotation rules are welcome. But the thresholds for private companies need to be revised upwards,” G Ramaswamy, former CA Institute President and current Member of International Federation of Accountants (IFAC) board, said.

He also highlighted that auditor rotation is still being discussed in international forums and is only slowly gaining traction in developed countries forming part of the European Union.

KPMG view

While auditor rotation is gaining momentum in the EU and many other parts of the world, extending the requirement to unlisted companies is unusual, Jamil Khatri, Global Head of Accounting Advisory Services, KPMG in India, said.

This may be particularly troublesome for unlisted Indian subsidiaries of global multinational companies since the rotation period and requirements in their home countries may be different from those prescribed in India resulting in challenges in audit of the consolidated financial statements, he added.

The threshold levels prescribed in the auditor rotation rules are “practical”, said Yogesh Sharma – Partner, Assurance at Grant Thornton India LLP.

This is a welcome change as it would provide significant relief for smaller companies, and to their auditors, from auditor rotation requirement not covered within these thresholds without muting the intent of the legislation, he added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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