With more disclosures, auditors may seek higher compensation for their work

Audit companies are still assessing the increase in their workload because of the new rules

Auditors may seek higher compensation for their work, with the latest rules significantly increasing the number of disclosures to be made in audit reports from this financial year itself, industry sources said. 

“The implementation of the new guidelines will involve higher fee, even though the negotiations have already happened for this year,” a senior executive with one of the big four network firms said. 

The government notified the Companies (Auditor’s Report) Order, 2020, on Wednesday. It more than doubled the number of disclosures to be made by auditors to improve financial discipline. 

Audit companies are entitled to a higher fee than stipulated if