ICAI sets up committee to examine MNC audit firms operations

The Institute of Chartered Accountants of India (ICAI) has set up a eight-member committee to study the current operating structure of multi-national audit firms present in the country.

The committee is being headed by ICAI vice president Prafulla Chhajed.

As per the present regulation, no foreign audit firm is allowed to practise in the country. They can operate through network partners only.

"We will be examining the operations of these multinational accounting firms and what kind of arrangements they have with their network partners. Based on that, we will come out with the report," Chhajed said today.

The committee will send its findings to the central council of ICAI.

"If the council feels there are any issues then it will raise it with the government," he said.

ICAI's central council consists of 32 members from ICAI and eight government nominees.