by companies amid mounting pressure from local financial institutions. “A high-powered committee is currently examining the option and a decision will be taken, based on their recommendation, very soon,” ICAI president Ved Jain told ET.
The crux of the scam in Satyam
New directors of Satyam
The Great Fall of Satyam
To begin with, ICAI is likely to ask auditors of top-listed companies to retire after a three-year term, he said. At the next stage, a mandatory rotation of auditors would be proposed for all public interest entities like private banks and insurance companies, Mr Jain said.
Currently, only public sector banks are required to rotate auditors, appointed from among RBI-empanelled list of audit firms, but there is no compulsion on private banks and insurance companies to follow the practice.
Industry insiders, however, feel that even if ICAI makes rotation of auditors mandatory, it may not help unless it is enshrined in the Companies Act or enforced as a regulator requirement by Sebi and Company Law Board. “If ICAI can make it mandatory for its members to retire every three years, auditors will not have a choice but to adhere to it. But an amendment to the Companies Act will institutionalise the process,” a chartered accountant said.
Menu
ICAI favours 3-year rotation of auditors
30 Jan 2009, 0018 hrs IST, ET Bureau
MUMBAI: The self regulatory body for auditors, Institute of Chartered Accountants of India (ICAI) is pushing for compulsory rotation of auditors
Five facts about Satyam
Replies (1)
If the rotation will be there, will be good for companys and audiors sir?
Recent Topics :
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
- Sell of CAFC books
- ITC ON RENT
- GSTR-9 Table 8A Portal and Excel Issues
- IGST on Commercial Rental Income (Different State)
- Revocation of suo moto cancelled GST registration
- Is there any faculty taking chapterwise test in CA
- Late Fees and Interest
Related Topics :
CAclubindia
