Price Waterhouse will not perform audits for large audit clients
NEW DELHI: Waterhouse Price On Thursday, he said he will stop providing non-audit services, such as consulting, to his large and quoted clients, which are governed by (NFRA). While the number of such companies is not immediately available, the measure indicates a significant change amid repeated concerns about possible conflicts of interest. In a statement, the global audit and consulting firm said its entire network of firms in India will be governed by the decision.
“Considering the wide-ranging discussions with stakeholders about the future of audit, Waterhouse Price India firms believe that this voluntary action will further strengthen the audit profession in India and enhance trust in the Indian capital markets, society and Indian economy at large,” it said.
The measure will highlight other Big Four audit firms such as Deloitte KPMG and EY, which provides auditing and non-audit services such as taxes, mergers and acquisitions and other consultancies. The role of these companies has been under the scanner after a series of corporate scandals, ranging from Satyam, the Nirav Modi scam to the collapse of IL&FS. There were often questions about these companies that overlooked the gaps in the accounts, since they also made money through consulting services.
In fact, NFRA was created to narrow the loop around the auditors, since the regulator, the Institute of Public Accountants of India (ICAI), was slow in deciding the cases.
Separately, the president of ICAI, Atul Kumar Gupta, said that the institute has suggested legal provisions for the termination of cases for a limited time through an amendment to the Law of Public Accountants.