Deloitte check on offerings
Auditing major Deloitte Haskins & Sells and its network firms in India will no longer offer non-audit services to public interest entities that they audit in the country, the company said on Sunday.
Deloitte is following in the footsteps of Price Waterhouse, which had announced a similar decision last week.
Deloitte on Sunday said that this voluntary action is in the spirit of self-regulation and extends beyond non-audit services permissible under prevailing rules and regulations in India.
“We believe this would increase the public's confidence in auditor independence and quality and will remove ambiguity in a public and business environment that demands greater clarity about our services,” a spokesperson from Deloitte said.
Price Waterhouse Network of Firms in India (PW India) on Thursday said they will no longer provide non-audit services to their audit clients that are governed by the National Financial Reporting Authority (NFRA).
On February 7, the corporate affairs ministry had proposed significant amendments to existing regulations to enhance independence and accountability of auditors.
Against the backdrop of instances of many auditors and auditing entities coming under the regulatory lens for alleged misdoings, the ministry came out with a a consultation paper on proposed legal changes regarding audit.
The paper is to “examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability”.
“Considering the wide-ranging discussions with stakeholders about the future of audit, PW India firms believe that this voluntary action on its part will further strengthen the audit profession in India and enhance trust in the Indian capital markets, society and Indian economy at large,” PW India said in a statement.