Advertisement

Deloitte stops non-audit services to public interest entities in India

11:03 PM Feb 16, 2020 |

Auditing major Deloitte Haskins & Sells and its network firms in India will no longer offer non-audit services to public interest entities that they audit in the country, the company said on Sunday.

The announcement by Deloitte comes days after another audit firm Price Waterhouse Network of Firms in India said they will no longer provide non-audit services to their audit clients that are governed by the National Financial Reporting Authority (NFRA).

Advertisement
Advertisement

In a statement, Deloitte said this voluntary action is in the spirit of self-regulation and extends beyond non-audit services permissible under prevailing rules and regulations in India.

Advertisement

Also Read: National Company Law Tribunal echoes government’s decision to ban Deloitte, BSR

"We believe this would increase the public's confidence in auditor independence and quality and will remove ambiguity in a public and business environment that demands greater clarity about our services," a spokesperson from Deloitte said.

The jurisdiction of the NFRA -- which would be an oversight body for auditors -- extends to all listed companies as well as large unlisted public companies.

On February 7, the corporate affairs ministry proposed significant amendments to existing regulations to enhance independence and accountability of auditors.

Also Read: IL&FS scam: Government mounts fresh bid to get Deloitte, BSR banned

Against the backdrop of instances of many auditors and auditing entities coming under the regulatory lens for alleged misdoings, the ministry came out with a consultation paper on proposed legal changes regarding audit.

The paper is to 'examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability'.

(To view our epaper please Read Now. For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Advertisement