Deloitte stops non-audit services to public interest entities in India; says move to increase people's confidence in auditor independence

New Delhi: Auditing major Deloitte Haskins & Sells and its network firms in India will no longer offer non-audit services to public interest entities that they audit in the country, the company said on Sunday. The announcement by Deloitte comes days after another audit firm Price Waterhouse Network of Firms in India said they will no longer provide non-audit services to their audit clients that are governed by the National Financial Reporting Authority (NFRA). [caption id=“attachment_5759311” align=“alignleft” width=“380”] Representational image. Reuters[/caption] In a statement, Deloitte said this voluntary action is in the spirit of self-regulation and extends beyond non-audit services permissible under prevailing rules and regulations in India. “We believe this would increase the public’s confidence in auditor independence and quality and will remove ambiguity in a public and business environment that demands greater clarity about our services,” a spokesperson from Deloitte said. The jurisdiction of the NFRA — which would be an oversight body for auditors—extends to all listed companies as well as large unlisted public companies. On 7 February, the corporate affairs ministry proposed significant amendments to existing regulations to enhance independence and accountability of auditors. Against the backdrop of instances of many auditors and auditing entities coming under the regulatory lens for alleged misdoings, the ministry came out with a consultation paper on proposed legal changes regarding audit. The paper is to ’examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability'.