Saturday, August 14, 2010

GOVERNMENT AGENCIES TO SELECT AUDITOR FROM CAG-ICAI PANEL

The Comptroller and Auditor General of India (CAG) and the Institute of Chartered Accountants of India (ICAI) will jointly finalize a panel of eligible audit firms for different categories of projects and entities, based on the project size, number of locations and turnover For each category, there will be a fixed fee and the agencies will be free to select any auditor from the panel. For instance, the CAG-ICAI team will formulate eligibility criteria for audit firms to participate in auditing projects that come under various categories such as: up to Rs. 100 crore, Rs. 100-200 crore and Rs. 200-500 crore, and empanel firms for each sector. The minimum fee for each sector will also be fixed by the joint mechanism that will be set up by CAG and ICAI. This will help reduce instance of unhealthy auditing practices.

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