MCA SHELVES PEER AUDIT REVIEW PLAN

The Ministry of Corporate Affairs (MCA) has shelved its idea of auditing the books of listed companies by independent auditors. It was part of the joint plan of market regulator Securities and Exchange Board of India (SEBI) and the ministry to conduct peer review of audits, which involves getting the audit reports of a company vetted by another auditor for a second opinion. To start with, the proposal was intended to audit 30 companies on the Bombay Stock Exchange and 50 companies of the National Stock Exchange. It is now decided that the audit reports will be vetted by a penal of auditors appointed by the financial advisory board of the Institute of Chartered Accountants of India (ICAI).