ICAI units up 16-member group on SA600 modifications 

The CA Institute has constituted a 16-member group to information the Central Council on the problems round NFRA’s proposed modifications to a key auditing normal SA 600 on ‘Utilizing the Work of One other Auditor’. 

This group is predicted to current a report, and a notice for the consideration of the ICAI Central Council, which is to satisfy on September 17 to debate the scenario, and resolve the following plan of action, sources near the event stated. 

The group, which incorporates at the very least 4 former ICAI Presidents and previous AASB Chiefs, is being headed by Debashis Mitra, former ICAI President, they added. 

Realignment to worldwide accounting normal

Nationwide Monetary Reporting Authority (NFRA) desires Institute of Chartered Accountants of India (ICAI) to deliver modifications to its two decades-old SA 600, in order to align it with the worldwide accounting normal (ISA600).  

Aligning it with ISA600 would imply CA Institute permitting the principal auditor to entry the working papers of audit of part auditors of subsidiaries of company group. Additionally, the principal auditor (auditor of a holding firm in company group) must personal and take duty for the actions of the part auditors. 

Each ICAI and NFRA will not be on the identical web page on the difficulty of SA 600 modifications. NFRA desires to go forward to deliver modifications if ICAI shouldn’t be transferring on the matter. Already NFRA has indicated it might deliver a session paper on the difficulty and expose it for public feedback earlier than sending it to the Company Affairs Ministry (MCA) for notifying the revised auditing normal. 

‘Just about could kill majority of 96,000 CA corporations’

Institute of Chartered Accountants of India (ICAI) President Ranjeet Kumar Agarwal had lately instructed businessline that CA Institute shouldn’t be in favour of any ‘refresh’ to the 2 decades-old SA 600 that may result in focus of audit market solely in few fingers. He had then stated that NFRA plan would have an effect on small practitioners and just about kill majority of 96,000 CA corporations within the nation. India can’t “afford” to permit audit market to be concentrated within the fingers of few corporations, in response to Agarwal.