So what will change for Erst & Young? The change is that the E&Y audit team will also become completely identified with SRB, to the point that they will be seated separately and have different email addresses, sources told Bloomberg UTV. E&Y's public face of audits is an Indian firm called SR Batliboi & co.  

Another big change will be that there will not be any sharing of profits between the audit and non audit components, one of the key demands of ICAI, said sources. 

So, what exactly was the trigger in the ICAI report? The complaint has been that when both audit and non audit functions are carried out by the same firm, there could be a conflict of interest because. For instance, an audit is supposed to take the most conservative estimate of an asset's value, while a valuation report could take the higher end of the range. 

What is the status of the report by ICAI, and what exactly did it suggest? 

The ICAI report has been sent to the ministry of corporate affairs. No action is known to have been taken on it. Now the report had called for drastic changes in the way these firms functioned. It basically prohibited any firm from holding out that it was a part of a multinational accounting firm doing audits in India. For example, if the report is approved, a Lovelock & Lewis would not be permitted to say they are a member firm of PwC Global, as they do currently. (Bloomerg UTV)