Deloitte to discontinue non-audit services to public interest entities

By: |
Published: February 17, 2020 4:00:00 AM

It added that the voluntary action is in the spirit of self-regulation and extends beyond non-audit services permissible under prevailing rules and regulations in India.

Non-audit services include consultancy and transaction advisory services like mergers and acquisitions among others.Non-audit services include consultancy and transaction advisory services like mergers and acquisitions among others.

Auditing major Deloitte Haskins & Sells on Sunday announced a decision to discontinue non-audit services to public interest entities that it is already auditing.

Deloitte is the third firm to do so. Earlier, Grant Thornton and Price Waterhouse India network of firms (part of PwC India), announced similar decisions.

“We believe this would increase the public’s confidence in auditor independence and quality and will remove ambiguity in a public and business environment that demands greater clarity about our services,” Deloitte said in a statement.

It added that the voluntary action is in the spirit of self-regulation and extends beyond non-audit services permissible under prevailing rules and regulations in India.

Non-audit services include consultancy and transaction advisory services like mergers and acquisitions among others.

These voluntary announcements have come after the ministry of corporate affairs (MCA) released a list of issues that it saw as a potential threat to independence of auditors. These included personal relationship with clients, companies appointing auditors and auditors providing non-audit services, among other issues.

While there are no clear guidelines on what constitutes non-audit services and which set of companies would it apply to, the firms mentioned here have used different norms as benchmarks, including those prescribed by Institute of Chartered Accountants of India (ICAI) and National Financial Regulatory Authority.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Coronavirus could damage global economic growth in 2020: IMF
2About 92% of large taxpayers filed annual returns for 2017-18: GSTN
3FRBM not breached in Union Budget 2020, says Nirmala Sitharaman