Relaxing composition norms, tender reforms and capital support measures are among the changes that the ministry of corporate affairs is planning to build globally competitive domestic auditors
The number of mid-term auditor resignations saw an increase in FY25 when compared to the previous fiscal when 34 such exits were announced.
AGS Transact has defaulted/delayed in certain loan repayments, GST registrations in certain states have been suspended/cancelled and there have been delays in payment of statutory dues, employee salaries and vendor payments, a Crisil note observed.
Experts believe that this is a major governance issue and while the reasons for such sudden departure needs to be examined and analysed, auditors have mostly been very ambiguous in terms of giving the reasons for resigning
In a letter to Byju's board, which only includes the founder's family currently, BDO has however said the company lacked transparency, a sentiment even previous auditors have highlighted.
The accounting authority NFRA is passing a stream of orders against allegedly errant auditors, conducting swift investigations and passing detailed orders. But, there is a risk of overreach as well
The government proposed rotation of auditors with retrospective effect, in its draft rules for the new Companies Act. CNBC-TV18's Payaswini Upadhyay reports that the ministry, which put out draft rules to accompany 16 of the 29 chapters in the Act, call for changes in accounting and auditors.