A significant topic in the paper is about economic concentration of ''Big Four'' audit firms and the need to build capacity of home-grown Indian firms that may need to be at par with global organisations in terms of audit procedures and manpower capacity, among other factors.
PWC, Deloitte, EY and KPMG are generally called ''Big Four'', which operate in India through a network of local chartered accountants firms.
The ministry has sought comments on whether the number of audits under one audit firm or auditor needs to be reduced.
Inspection of audit engagements and developing a ''Composite Audit Quality Index''to improve accountability of auditors and audit firms are among other proposals.
"... suggestions are invited on what qualitative and quantitative parameters should be included in such an index, how they should be measured, and which all companies should be mandated for," as per the paper.
The deadline for submitting comments on the paper to ''examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability'' is February 28.
The corporate affairs ministry is implementing the Companies Act.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.