Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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
Popular Search: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: empanelment :: TDS :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT Audit :: articles on VAT and GST in India :: due date for vat payment :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
« Auditing »
 Supreme Court puts the spotlight on audit firms
 Auditing to be less of a burden as accountants embrace AI
 CAG's report on GST will be totally paperless
 Time Limit For Completion Of Assessment From The Date Of Special Auditor’s Report Under Income Tax Act, 1961
 Provisioning pertaining to Fraud Accounts
 Tax Audit Report (TAR) Certain exceptions and increased limits according to number of partners and considering nature of activity are desirable
 Cost Auditing Standards [ Cost Audit Documentation (102)] – Part-II
 Conference on Companies Act gets under way
 New bureau to dissolve state-run banks' power to choose auditors
 Foreign Exchange Management (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015
 ICAI forms 'prima facie' view on NSEL auditor

CII against rotation of auditors every few years
September, 17th 2010

The Confederation of Indian Industry (CII) has opposed the corporate affairs ministry move to rotate auditors and audit firms compulsory.

The provision for rotation of auditors has been included in the Companies Bill, 2009, recently been vetted by the Parliamentary Standing Committee on Finance.

The rotation of audit firms does not serve any purpose, and defeats the very purpose for which it is being introduced. Inclusion of this provision in the Companies Bill thus requires reconsideration, a CII official said.

Rotation of auditors was introduced in the Corporate Governance Voluntary Guidelines 2009 issued by the Ministry of Corporate Affairs during the India Corporate Week 2009. The Guidelines provided that while audit partners be rotated once every three years, audit firms be rotated once every five years. However, the ministry has now attempted to make this mandatory.

By the provisions included in the Bill and endorsed by the Standing Committee, an auditor (individual or firm) can be appointed or reappointed in a company for a period of five years, while the audit partner in the audit firm has to be rotated on completion of three consecutive years. The cooling-off period has been stipulated at three years in case of individual auditors and audit partners and five years in case of firms.

We feel rotation of auditors may not be the most efficient way to strengthen auditor independence and improve audit quality. It may, in fact, reduce the effectiveness of audit as the new auditor will need time to become familiarised with and understand the business of the company, CII said.

According to CII, the international norm for rotation of audit partners in most jurisdictions is at least six years. The three-year period prescribed in the report and guidelines is extremely short, considering the complexity of audit assignments which are peculiar to each company.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

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