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Auditors may face ban on non-audit work in large companies

Auditors may face ban on non-audit work in large companies

A high-level committee has proposed an overhaul of the audit architecture, including a ban on non-audit work in “public interest” or large companies, and mandating auditors of holding companies to look into the accounts of subsidiaries.
The panel, whose recommendations were released for public comments, has suggested joint audits for certain classes of companies, in addition to specifically providing for forensic audit under the law.
There are several recommendations related to strengthening the National Financial Reporting Authority (NFRA), which was set up in the aftermath of the collapse of IL&FS. The NFRA has taken away some of the powers that earlier vested with the Institute of Chartered Accountants of India when it came to regulating CAs and taking di- sciplinary action.

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