MCA to examine existing provisions of law & make suitable amendments to enhance audit independence & accountability

New Delhi, 11 Feb (KNN) Ministry of Corporate Affairs has invited comments on the consultation paper to examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability.

The paper seeks to ‘examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability’ and has sought comments by February 28.

The objective of this notice is to solicit the views/ comments of other government departments, regulatory agencies and general public on suggestions relating to amendment in existing law to enhance audit independence and accountability.

The concept of auditor independence requires the auditor to carry out his or her work freely with integrity and in an objective manner. Though auditor is appointed by the stakeholders, the effective power of their appointment and dismissal lie with the management.

In the Companies Act, chapter 10 (Section 139 to 140), 2013 deals with the Audit & Auditors. Section 139 deals relate to appointment of auditors and section 140 deals with removal and resignation of Auditor, giving the speculation notice.

In order to properly implement the aforesaid provisions relating to auditors, the central government has notified the Companies (Audit & Auditors) Rules, 2014 and made amendments in the rules from time to time.

Comments/Suggestions on the consultation paper along with justification in brief may be sent latest by February 28, 2020 through email at audit.policy@mca.gov.in

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