Revised networking guidelines soon; to boost smaller audit firms: ICAI

NEW DELHI: In efforts to bolster the ecosystem for domestic audit firms, the chartered accountants' apex body ICAI will soon come out with a revised set of networking guidelines that will provide a stronger framework for pooling of resources. The revised networking guidelines has been approved by the ICAI council, the body's President Atul Kumar Gupta said on Wednesday.

The revised guidelines, once in place, are expected to help smaller audit firms.

"The need of the hour is for domestic firms to come together... The (revised) guidelines will also help Indian firms to become global players," Gupta said.

The Institute of Chartered Accountants of India (ICAI) has more than three lakh members.

Efforts are being taken over the years boost domestic audit firms as part of larger efforts for the country to have big audit firms.

According to Gupta, the corporate affairs ministry is expected to soon notify Multi Disciplinary Partnerships (MDPs) wherein a chartered accountant can have partnerships with a cost accountant or a company secretary or certain other professionals, including engineers.

The first MDP is likely to come up by March this year, he added.

He also said the "ecosystem for audit quality" has improved and that the institute is always working on improving the audit quality.