ICAI sets up expert panel to answer queries on statutory audits

Amidst changing business models and new age companies, the Institute of Chartered Accountants of India (ICAI) has set up an expert panel to address queries on statutory audits from chartered accountants.

“With the rapidly evolving business environment, introduction of new age companies, start-ups, increased number of companies going public, and amid a plethora of regulatory and reporting requirements, the role of auditors has increased manifold,” said the ICAI in a recent circular.

In the current environment with an increasing expectation from auditors, the Auditing and Assurance Standards Board (AASB) of ICAI has decided to provide necessary support to the members in practice with respect to the statutory audit of entities pertaining auditing aspects with the objective of enhancing quality, the circular said.

The expert panel, which is co-convened by Sanjeev Kumar Singhal, Chairman, AASB and Vishal Doshi, Vice Chairman, AASB, will address queries from April 16 to September 30 this year.

The ICAI has however cautioned that the views expressed by the experts would be personal and not necessarily the views of the AASB or the ICAI. Further, the AASB, ICAI or the experts of the Panel, would not accept any responsibility for actions taken by the auditors asking questions based on such advice. “These views are not to be used as evidence in any non judicial/ quasi judicial/ judicial proceeding before any authority,” it has also clarified.

The decision to set up the expert panel comes at a time when several start-ups are in the midst of regulatory action and investor uproar over various practices. There has also been greater ask from auditors to raise red flags in statutory audits. ICAI’s Financial Reporting Review Board (FRRB) has been undertaking a review of Byju’s. ICAI President Ranjeet Kumar Agarwal had recently said it may also take up a similar review of Paytm Payments Bank, which has been facing action from the Reserve Bank of India.

The FRRB is a committee of the ICAI which works to improve financial reporting practices. 

The ICAI, which is the apex body of chartered accountants, had recently also set up an expert panel to address queries related to audit of bank branches. “Given the fact that the banking industry is typical in terms of its geographical reach and diverse customer base, along with the extensive range of products and services offered, conducting audits within the given timelines poses numerous challenges for the members,” it had noted, adding that these challenges may include determination of Non-Performing Asset (NPA) status, implication of complex data encountered during branch audits and encountering situations where relevant RBI circulars are unavailable.