ICAI wants power to take action against erring audit firms

Accounting regulator Institute of Chartered Accountants of India (ICAI), today said it is seeking power to take action against erring firms.

“As per the Act, the institute can take disciplinary action against our members but not against other firms. It is becoming extremely important to curb ill practises. So, for the first time, the ICAI has decided to recommend the Union government that power to act against firm be given to the institute after necessary amendments in the Act,” ICAI President Amarjit Chopra told reporters on the sidelines of an an event here.

“We want more powers to ensure that big corporate scandals do not occur in future. In cases where firms are committing objectionable deeds, the power will prove helpful.