Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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 INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: empanelment :: cpt :: due date for vat payment :: VAT RATES :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: form 3cd
 
 
ICAI »
 Guidance Note on Division II- Ind AS Schedule III to the Companies Act, 2013
 Multipurpose Empanelment Form for the year 2017-18
 Notification CPT - June, 2017
 Notification Final - May, 2017
 Result of the Chartered Accountants Final Examination held in May 2017 and Common Proficiency Test (CPT) held in June 2017 declared.
 Invitation for expression of interest from software development companies for providing software relevant to the Practitioners & CA Firms of ICAI by 31 August, 2017.
 Alternate website for CA Final and CPT May/June 2017 Results
 CPE Events 17th July - 22th July 2017
 Result of the Chartered Accountants Final Examination held in May 2017 and Common Proficiency Test (CPT) held in June 2017 are likely to be declared on Tuesday, the 18th July 2017.
 Result of the Information Systems Audit [ISA] Assessment Test held on 24th June 2017 is likely to be declared on 18th July, 2017.
  Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 10

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 2017 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