The Institute of Chartered Accountants of India (ICAI)is in
favour of ushering in a system of “joint audits”, but only for large
companies.
This position of the CA institute — which
is the regulator for auditors — has been conveyed to the
government-appointed expert group headed by former Finance Secretary
Ashok Chawla.
The expert group has been tasked, among
other things, to look into the feasibility of introducing “joint audit”
in cases where there are restrictive covenants and/or in other cases
where there is a multinational audit firm as the auditor.
In
joint audits, two or more auditors conduct audit on a legal entity (the
auditee) to produce a single report, thereby sharing responsibility for
the audit.
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