Announcement on Applicability of ‘Implementation Guide on Resignation/ Withdrawal from an Engagement to Perform Audit of Financial Statements’ to Statutory Auditors of Listed Entities and their Material Subsidiaries.

1. The Auditing and Assurance Standards Board of ICAI issued “Implementation Guide on Resignation/ Withdrawal from an Engagement to Perform Audit of Financial Statements” on 30th November 2018. Paragraph 25 of the aforesaid Implementation Guide which prescribes applicability of the aforesaid Implementation Guide is reproduced below:

“Applicability

25. This Implementation Guide is applicable in case of audits of all listed entities. Further, in case of audits of banks, insurance companies and other corporate entities, the guidance given in this Implementation Guide be also followed, as applicable.”

2. SEBI has issued a Circular dated 18th October 2019 regarding “Resignation of statutory auditors from listed entities and their material subsidiaries”. The aforesaid Circular prescribes various conditions to be satisfied by listed entities, their material subsidiaries and their statutory auditors. Some members have raised queries regarding applicability of the aforesaid Implementation Guide to statutory auditors of listed entities and their material subsidiaries.

3. It is hereby clarified that statutory auditors of listed entities and their material subsidiaries are required to comply with the aforesaid Circular.

4. This Announcement will come into force from immediate effect.

Chairman
Auditing and Assurance Standards Board

Vice-Chairman
Auditing and Assurance Standards Board

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One Comment

  1. vswami says:

    IMPROMPTU
    “2. SEBI has issued A CIRCULAR dated 18th October 2019 regarding “Resignation of statutory audit…”
    FONT < Is it a Circular or Notification? In the CA Journal, 2019 December Issue) it has been called a ‘Notification’ !
    Of course, in recent times, by force of changing scenario and unpleasant developments / circumstances, the vital distinction between legislative enactments on one hand and issuance of circulars, notifications, and the like (issued in exercise of exclusive powers), respectively by Government and its regulatory bodies (e.g. ICAI and SEBI) on the other hand seem to have been given a ‘go-bye).
    And, such a change (for a change!) is routinely come-across, as a common but repulsive feature in the indirect tax regime; pointedly so, in the realm of GST code.
    courtesy

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