Chartered accountants’ apex body ICAI today said certain provisions in the proposed amendments to the companies law are “very important” for the accountancy profession. On Tuesday, Parliament passed a bill to amend the Companies Act to strengthen corporate governance standards, initiate strict action against defaulting companies and help improve ease of doing business. The Rajya Sabha passed the Companies (Amendment) Bill, 2017 by voice vote. It was cleared by the Lok Sabha in July this year.
“We are happy that some of the provisions that have been brought through this amendment are very important for the accountancy profession,” the Institute of Chartered Accountants of India (ICAI) said in a statement. These include provisions that auditors are now required to report on Internal Financial Control with reference to financial statements only and rationalisation of penalties such as fines for auditor default linked with audit fees.