• Deccan Chronicle
  • Andhra Bhoomi
  • Asian Age
  • ePaper
  •  Auto Refresh
Home

ePaper
Last Updated:02:25 PM IST | Thursday, Feb 02, 2023
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Menu
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Home > Politics, Plan and Policy > Big Four accountants may face CCI probe
Politics, Plan and Policy
Big Four accountants may face CCI probe
By  
DECCAN CHRONICLE.   , Published : Jul 23, 2019, 1:48 am IST | Updated : Jul 23, 2019, 1:48 am IST

To check if PwC, EY, Deloitte & KPMG abusing position.

The Ministry of Corporate Affairs, which holds that view, is yet to send any formal request to the CCI to probe the matter, said the official.
The Ministry of Corporate Affairs, which holds that view, is yet to send any formal request to the CCI to probe the matter, said the official.

New Delhi/Mumbai: The government wants the  antitrust body to assess whether the so-called “Big Four” auditing firms and their affiliates are hurting competition in any manner, a senior government official told reporters.

The Competition Commission of India (CCI) needs to conduct a survey or an investigation to assess whether the Big Four that include PwC, EY, Deloitte and KPMG are abusing their dominant position in the Indian audit market, said the official, who spoke on condition of anonymity.

The Ministry of Corporate Affairs, which holds that view, is yet to send any formal request to the CCI to probe the matter, said the official.

“If you look at the top 500 companies in India, they are totally dominant and the Big Four seem to be sharing the work ... whatever be the reason there seems to be entry barriers,” the official told reporters.

“The CCI should look into the dominance of these four global auditors and whether they are thwarting competition.”

The CCI and the four auditors did not immediately respond to a request for comment.

The Big Four do auditing work for almost 60 per cent of the top 500 companies that trade on National Stock Exchange, according to NSE Infobase.

The deliberations around an antitrust review come at a time when the Big Four are facing increased scrutiny in India.

Last year, all the local units of PwC were barred from auditing any listed companies for two years in India after a probe into a decade-old accounting fraud. An EY firm was also barred last month from conducting certain statutory audit assignments until April 2020.

In the latest case, Deloitte Haskins & Sells and a KPMG affiliate are fighting a legal battle with the Ministry of Corporate Affairs which wants to ban them for five years on allegations they violated several auditing standards at Indian financial firm IFIN, a unit of IL&FS.

Both Deloitte and the KPMG affiliate deny any wrongdoing. The government has also alleged Deloitte offered services to IFIN in breach of company law that prohibit auditors from rendering certain other services.

The official said India is considering whether to cap the revenue an accounting firm can earn by offering non-audit services to a firm it is auditing, and if there should be prohibition on an auditor’s parent firm offering tax advisory solutions.

“We are studying the aspect of independence of auditors and various conflict of interest issues,” said the official.

Currently, auditors are not allowed to earn more non-audit fees from companies they audit than their audit fees. An Indian government panel, however, has proposed limiting the non-audit fees to 50 per cent of the audit fees.

A source at one of the Big Four said the non-audit services it provides to its audit clients are significantly below the current and proposed regulatory limits.

Britain’s competition watchdog in April proposed some of the biggest reforms to auditing globally, recommending new laws to force the Big Four to separate their audit and consulting arms.

 —Reuters

end-of
Tags: 
competition commission of india, ministry of corporate affairs
Location: 
India, Delhi, New Delhi
Latest From Politics, Plan and Policy
As per the finance ministry, Finance Minister Nirmala Sitharaman will meet stakehokder groups of 'New Economy: Start-ups, Fintech and Digital Sector' on Monday morning, and financial sector and capital market representatives later in the day. (Photo: File | ANI)

FM Sitharaman to hold pre-Budget meetings with stakeholders beginning today

Brent crude futures were up 19 cents, or 0.3 per cent, at USD 62.47 a barrel.

Oil rises amid optimism over OPEC supply cuts, hopes on US-China trade

Traders are now eyeing next month’s meeting between the OPEC and Russia to determine if the group would deepen output cuts to prop up prices. (Photo: Twitter)

Oil slips as US-China trade deal hopes dwindle

Most Popular

Mukesh Ambani 9th richest on Forbes' real-time billionaires list
Top credit card myths harmful for your financial well-being
Microsoft CEO Satya Nadella tops Fortune's Businessperson of the Year 2019
Employment growth slowed down in last two years: report
GST structure: key challenges and its solutions

Editor's Picks

Income tax e-filers drop by over 6.6 lakh in FY19: Official data
Swiping on your smartphone reveals a lot about you to your social media company
  • Read Financial Chronicle as it appears in print.
  • Subscribe, and get it delivered in the inbox everyday.
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
  • Home
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Guidelines
  • Copyright © 2019 Financial Chronicle, All rights reserved
Developed & Maintained By Daksham