Introduction: The Professional Development Committee of The Institute of Chartered Accountants of India brings attention to a crucial announcement by the Office of C&AG on the empanelment of Chartered Accountant firms/LLP for the year 2024-2025, affecting the allotment of audits for Government Companies and its units.
Detailed Analysis: Traditionally, C&AG has considered both the Head Office and Branch Offices of firms while allotting audits for Government Companies across various locations. However, a significant change has been introduced for the empanelment year 2024-2025. The focus will now be on the Branch Offices, with a specific criterion – only those Branch Offices will be considered where at least 50 percent of the full-time partners or two full-time partners, whichever is less, of the firm/LLP, are stationed.
This shift in criteria emphasizes the importance of the physical presence of partners at Branch Offices, ensuring a more direct involvement in the audit process. The change aims to enhance accountability and efficiency in the audit of Government Companies and their units.
Conclusion: Members of The Institute of Chartered Accountants of India are urged to take note of this significant update from the Office of C&AG. Adapting to this new criterion is essential for firms/LLP aspiring to be empaneled for audits in the empanelment year 2024-2025. The focus on partner stationing at Branch Offices underscores the commitment to quality audits and reinforces the evolving landscape of professional standards in the field of chartered accountancy. Stay informed to stay ahead in the dynamic realm of audit empanelment.
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Professional Development Committee
The Institute of Chartered Accountants of India
9th November, 2023
Announcement
Empanelment of Chartered Accountant firms/LLP by Office of C&AG from the empanelment year 2024-2025
The office of C&AG has been giving cognizance to location of the Head office as well as Branch Offices of the firms for the purpose of allotment of audits of Government Companies and its units located at various locations
It has been informed by the Office of C&AG that from the empanelment year 2024-2025, while considering the firm/LLP for allotment of audit on the basis of the location of its Branch Office, only those Branch Offices will be considered where at least 50 percent of the full-time partners or two full time partners, whichever is less, of the firm/LLP, are stationed.
Members may kindly note the above.
Professional Development Committee
