Govt plans to tighten rules for auditors

The government is planning to review the auditing standards as it looks to tighten the norms governing auditors, a senior official said. The Corporate Affairs Ministry, which is implementing the companies law, is working on ways to bolster the overall corporate governance framework.

In recent times, some auditing entities as well as auditors have come under the regulatory lens in connection with alleged misdoings at companies as well as for quitting audit work of corporates on various grounds.

Corporate Affairs Secretary Injeti Srinivas has said the ministry is committed to strengthening the corporate governance framework in the country.

The government has been clamping down on shell entities suspected to be conduits for illicit fund flows and names of lakhs of companies that have not been carrying out business activities for long have been struck off from official records. According to the Secretary, the ministry “plans to review the auditing standards to tighten the rules for the auditors”.