ICAI chief backs RBI on new audit rules

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NEW DELHI: In the tussle between foreign and Indian firms over auditing bank accounts, the Institute of Chartered Accountants of India (ICAI) president Nihar Jambusaria has backed the RBI’s new norms and said there is no dearth of entities to perform the task credibly.
In a conversation with TOI, the head of the chartered accountants’ body said that the move to allow rotation will remove the possibility of conflict of interest. “Our ethical standards talk about acquaintance threat and the new norms seek to address that. If you work for the same client for a long time, due to acquaintance your independence can be an impacted,” said the head of ICAI, which is the regulatory agency for auditors.
In a fresh circular last month, the RBI has provided for a three-year term for statutory auditors and statutory central auditors with the audit firm being ineligible for reappointment…

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