Saturday, January 12, 2013

New Company Law _A practising CA can Audit max 20 companies

As per the new Law passed by the new Companies Act , restriction has been put on maximum number of Audit which a practising CA can do . This rule includes Company of any type . I mean in calculating this 20 companies all type of companies will be considered , Private Limited , Public Limited , Listed

As on date India has around 1,00,000 Practising chartered Accountatnt . To serve the active companies  ( around 7,00,000 ) in India around 35000 CA will be required ( @ 20 Companies per CA ) .

It is to be seen wheather the Law will be be passed  as it is in the upper House  or some changes will be incorporated based on the lobbying being done by some section of people getting impacted of such a restriction . One possibilities can be 20 Listed Companies can be capped and small private limited company will be excluded   .

What ever it may be such a restriction may change the Audit dynamic prevailing presently in India . In India majority of the Big Companies are audited by the so called  Big 4 . If such a restriction comes it may get distributed to small firms    

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