News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« Professional Updates »
 Advanced ICITSS is Scheduled on Sundays, the 15th March, 2020 and 12th April, 2020 from 10.30 AM to 12.30 PM (IST).a
 ICAI Invites Suggestions on Tax Proposals of Union Budget 2020-21.
 Special Examinations - MRA / MOU, June 2020
 Empanelment of Members to act as Observers at the Examination Centres for The Chartered Accountants Examinations May, 2020
 CPE Events 27th January -1st February 2020
 Register for Fourth Exclusive Batch of German Language (120 hours) for ICAI Members and Students at Delhi. Last Date - 29th January, 2020
 CMI&B of ICAI is conducting 51st Campus Placement Programme in the month of Feb-March, 2020.
 Office hours arising out of Security Arrangements for Republic Day - 2020
 Certificate Course on Forex and Treasury Management –Forthcoming Batches at Noida & Mumbai
 Result of the Information Systems Audit [ISA] Assessment Test held on 28th December 2019 is likely to be declared on Thursday, 16th January 2020 (evening)/ Friday, 17th January, 2020.
  DAAB of ICAI releases Digital Competency Maturity Model for Professional Accounting Firms - Version 2.0 and Implementation Guide

ICAI favours 3-year rotation of auditors
January, 30th 2009

The self regulatory body for auditors, Institute of Chartered Accountants of India (ICAI) is pushing for compulsory rotation of auditors 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.

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.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting