Deloitte said that , it will not offer non audit services public interest entities. The public listed entities include all banks and insurance companies as their clients.
"we believe this would increase public confidence and quality and will remove ambiguity in a a public and business environment that demands greater clarity about our services".Deloitte spokesman said.
Price Water house India was the the first to announce that they will not extend there non audit services in India, and the experts said that there is pressure from stakeholders to keep audit and non-audit at arms length to avoid conflict of interest.
Deloitte and Haskins& Sells was among the two firms that the serious fraud investigation had asked the national company law tribunal to bar alleged lapses in auditing the books of IL&FS financial services.The Bombay High Court had granted interim relief to the auditors against any coercive action in November.
Deloitte has failed to comply with the standards of auditing by prohibiting non audit services for substantial fees of financial services.
In the press statement issued by Deloitte on Sunday said that , it was there voluntary action to self regulate and extend beyond non-audit services which is permissible under prevailing rules and regulations in India.
A recent consultation paper floated by the corporate affairs ministry called for suggestions on increasing the list of non audit services and amending existing laws to enhance independence and accountability.
"the auditors will be tempted to eliminate certain audit procedures to reduce costs, take on riskier clients, acquiesce to managers of a firms which would only increase the already continued high rates of audit deficiencies", the paper said.
Most firms operate as a network and have a brand licensing agreement with the big four,which infact is unfortunately not allowed to undertake audit activities in India.
"we believe this would increase public confidence and quality and will remove ambiguity in a a public and business environment that demands greater clarity about our services".Deloitte spokesman said.
Price Water house India was the the first to announce that they will not extend there non audit services in India, and the experts said that there is pressure from stakeholders to keep audit and non-audit at arms length to avoid conflict of interest.
Deloitte and Haskins& Sells was among the two firms that the serious fraud investigation had asked the national company law tribunal to bar alleged lapses in auditing the books of IL&FS financial services.The Bombay High Court had granted interim relief to the auditors against any coercive action in November.
Deloitte has failed to comply with the standards of auditing by prohibiting non audit services for substantial fees of financial services.
In the press statement issued by Deloitte on Sunday said that , it was there voluntary action to self regulate and extend beyond non-audit services which is permissible under prevailing rules and regulations in India.
A recent consultation paper floated by the corporate affairs ministry called for suggestions on increasing the list of non audit services and amending existing laws to enhance independence and accountability.
"the auditors will be tempted to eliminate certain audit procedures to reduce costs, take on riskier clients, acquiesce to managers of a firms which would only increase the already continued high rates of audit deficiencies", the paper said.
Most firms operate as a network and have a brand licensing agreement with the big four,which infact is unfortunately not allowed to undertake audit activities in India.
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