Respected CA Manoj Fadnis
President ,ICAI , New Delhi
Ref; kindly clarify the logic behind four Concurrent audits per member. Kindly take back the decision to allow equal distribution of work in the hands of small partnership firms and sole proprietorship firms.
The decision on concurrent audit ceiling per member is fixed by council in its 342nd meeting recently held at HQ Delhi. It was claimed as ICAI’s endeavour to strengthen policies and procedures that enable members to render quality services. In a separate manner,( Why is this separate) the Council decided to fix limit on concurrent audit of banks at 4 audits per member per year. If this is so, it’s going to be disastrous for the fraternity though you claimed that these limits are carefully kept to enable members to devote more time thereby improving the quality of work. It’s illogical. There is also no point about the date of implementation i.e 1.1.2016 when the new council shall be ready to sworn. What’s a politics in to it ?
It is also depressed to read your communication about concurrent limit with no mention about any change in council stand which debars sole proprietor for concurrent audit. It’s totally unfair, unjust and arbitrary decision. It’s against the sole proprietorship as well as small partnership firms as big partnership firms shall swallow the total opportunity available on this front.
How can council work against the equal distribution of audit assignments and how ICAI Council introduced the ceiling @ 4 audit per member for concurrent audit of banks. The decision is bad and should be taken back and a logical decision be taken to benefit all the practicing chartered accountants irrespective of their status as sole proprietary/ partnership. This limit is too high and a rational decision should be taken for the same.
In my opinion, a proprietary concern be allowed to take up one 1 bank branch concurrent audit at a time. However, if such proprietary concern has a full time paid CA. employee for a period of 12 months or more, immediately precedes the date of appointment as a concurrent auditor, then the proprietary concern be allowed to take one more branch concurrent audit per such paid CA. employee.
In case of partnership firms, the firm be allowed to take one concurrent audit per partner of firm and not more than four concurrent audits on overall basis. As per my knowledge Central Council Meeting of the ICAI held on Nov. 20th and 21st, 2014 considered the above mention formula but rejected the same with a positive note to have a ceiling of the concurrent audit.
Now the ceiling of 4 Concurrent audits per member is unjust, illogical and deserves to be knocked out. I am afraid the ceiling of four concurrent audits per member has no merit or meaning, rather it shall concentrate the concurrent audits to few of the firms. Kindly take a corrective decision and announce the policy for equal distribution of firms.