Money & Banking

CA Institute approves revised networking guidelines for firms

K.R.Srivats New Delhi | Updated on March 23, 2021

It has also been specified in the guidelines that chartered accountants can share their fees with others   -  istock.com/wutwhanfoto

To approach RBI, CAG to recognise “networks”

The CA Institute’s central council has approved the revised networking guidelines that would help Indian audit firms to grow big and gain larger assignments in the country. “The guidelines are expected to make it conducive for Indian audit firms to come together,” Nihar Jambusaria, President, Institute of Chartered Accountants of India (ICAI) told BusinessLine.

They were initially framed in 2005 and later revised in 2011. “A group was formed last year to revise the guidelines and make them conducive to enable CA firms to go in for networking, which is much required,” he added.

‘Allotment purpose’

ICAI will now approach regulators like Reserve Bank of India and Comptroller and Auditor General of India to submit that “registered networks within the fold of ICAI should be recognised” by them for the purpose of the allotment of public sector and bank branch audits.

“For public sector audits, it may take some time to recognise such networks. But we will take efforts,” Jambusaria said. It has also been specified in the guidelines that chartered accountants can share their fees with others.

In February this year at the council meeting some changes were suggested to the guidelines and they have now been carried out, he added. These guidelines have already been forwarded to the Corporate Affairs Ministry (MCA).

Meanwhile, the ICAI President also said that separate guidelines have to be framed for networking of domestic firms with foreign firms and a separate group has been set up for this purpose. “During this year itself we will come with guidelines for networking with foreign firms,” he said.

Published on March 23, 2021

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