New set of regulations in India are about to change the Indian auditing landscape in an unprecedented way… Section 139(2) of the Companies Act, 2013 (the Act) prescribes all public and designated private companies, with a few exceptions, to mandatorily change their audit firms after two terms of 5 years each. The auditors have been given a break of 5 years after two consecutive tenures.
These new rules mean audit companies are likely to lose high-profile clients.
For the big Four – Deloitte, EY, PwC and KPMG – preparing for a new system doesn’t simply mean re-organize and revamp … It also means they will have to prepare for a feisty battle with competitors for thousands of statutory audit clients. The big Four will have to fight among themselves for a new wave of audit-seeking clients ; and they’ll also have to struggle with a number of smaller Indian firms.
For the whole scoop on the largest national audit rotation to date, check this article.
On the photo, an Indian Board of auditors: we don’t get to dress this lavishly at ThayerONeal 🙂