Chennai: Opposing any further curbs on “complementary” non-audit services provided by auditors to companies, several industry bodies have told the government that the existing framework in this regard is adequate and benchmarked with the best global practices.
They have said there are sufficient safeguards in place with regard to the currently permissible non-audit services
provided by auditors to their clients and any further restrictions or any addition to the restricted list would increase the cost of services without any corresponding benefit for the audit quality or independence.
The industry bodies have made their submissions in response to a consultation paper floated by the Ministry of
Corporate Affairs (MCA), which has proposed significant amendments to existing regulations to enhance independence and accountability of auditors. This comes in the backdrop of several auditors and auditing entities coming under the regulatory lens for alleged misdoings.
While the Companies Act restricts auditors from providing certain specified non-audit services directly or
indirectly to the company being audited as also for its holding and subsidiary entities, the MCA has now asked what more non-audit services can be included in the list.