Ministry of Corporate Affairs (MCA) released a consultation paper to examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability. As per the paper, the concept of Auditor independence requires the auditor to carry out his or her work freely, with integrity and in an objective manner. However, time and again, audit independence has been questioned, as to whether the auditor really doing justice to the interest of shareholders and is staying true to the audit profession.
In wake of the recently instances of failure of auditors, the Ministry is of the view that the existing regulatory provisions relating to Audit and Auditors in Companies Act, 2013 and its Rules along with Standard of Auditing need to be reviewed.
The consultation paper is attached for your reference. The last date to send response to MCA is March 15, 2020.
We request you to share your comments on the report, if any, by 9th March, 2020 to Tejasvi@nasscom.in