Amid persisting concerns that foreign audit companies might be circumventing the country’s legal provisions, Corporate Affairs Secretary Injeti Srinivas said there has to be a method where network firms are also registered with the ICAI, which is the frontline regulator.
New Delhi: Asserting that “one-size fits all” approach cannot be put in place for the complex audit industry, Corporate Affairs Secretary Injeti Srinivas has said the potential of conflict of interest needs to be addressed and made it clear that whoever is practising audit in India will have to be regulated under the country’s regulations.
Amid persisting concerns that foreign audit companies might be circumventing the country’s legal provisions, he further said there has to be a method where network firms are also registered with the ICAI, which is the frontline regulator.
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“Today, ICAI is registering individual members but is not registering firms. So, there are gaps and those also need to be addressed,” he told in an interview.
The ICAI is the apex body of chartered accountants. Overseas audit entities operate in the country through network firms model.
Source: Economic Times
