The Ministry of Corporate Affairs is planning to amend the Chartered Accountants Act to build disciplinary mechanisms for removing possible conflicts of interest between audit firms and companies they audit. 

The government is also looking at ways to address the gaps in the law with respect to network entities of which audit firms are part. “We need to strengthen the Chartered Accountants Act.

The government, in creating disciplinary mechanisms, could consider bringing in disclosure norms for auditors with respect to non-audit services and fees charged by them.

Many entities need to be brought within the regulatory remit to create accountability and transparency,” a senior government official told Business Standard. #casansaar (Source - Business Standard)