Auditor exits mount at listed SMEs as scrutiny increases after IL&FS crisis

Eight out of twelve auditors exited mid-term in 2019; one analyst says "spotlight" on them has increased.

Small and medium enterprises (SMEs) account for an increasing share of instances of mid-term auditor exits among listed companies. They accounted for around 8 per cent of such exits in 2016. This has risen to over 66 per cent in the first five months of the year.

The share of such exits in 2019 shows them accounting for eight out of the twelve auditors as of May 16, shows a collation of such resignations accessed from corporate tracker Prime Database.

The share was 25 per cent last year (12 out of 48 exits). It was also 25 per cent in