The Insurance Regulatory and Development Authority (IRDA) has refrained from directly appointing statutory auditors, by retaining the practice of prescribing eligibility criteria for appointment of auditors by insurers.
IRDA would not have a panel of auditors and would not appoint auditors, as demanded by accounting regulator ICAI.
The regulator has not been maintaining panel of auditors since 2005 and instead prescribing the requirements for their appointment by insurers.
In the backdrop of inflated balance sheet of Satyam Computer, chartered accountant body ICAI had pitched for the appointment of statutory auditors for insurance firms by IRDA.
As per the circular, IRDA asked insurers to ensure that statutory auditors appointed by them should meet the criteria like existence of such a firm for at least 15 years.