Auditor Rotation Deadline Sparks Poaching War

According to the Companies Act of 2013, firms have to change external auditors every 10 years to avoid discrepancies

- Devina Sengupta

More than 600 companies will have to change their auditors over the next four years under the Companies Act, setting in motion a once-in-a-decade shakeup that will transform India's audit market.

Apart from facing an opportunity to win marquee clients and the risk of long-held accounts slipping away, the looming upheaval has ignited a ferocious poaching war among top audit firms to arm themselves with the right talent for upcoming client bids and pitches.

The Big Four-KPMG, Deloitte, EY and PwC-are bulking up their audit benches with forensic analysts, tax chartered auditors and accountants, while other rivals such as BDO and Grant Thornton, too, are angling for their share of the spoils. Senior partners have been cautioned to hold on to their high potentials using incentives such as global postings or even additional bonuses.

A senior executive in one of the Big Four firms said that its audit team comprises 15% of the firm, which is now hiring keeping the rotation in mind.

"We are looking for partners who are experts in emerging technologies to cater to the audits of new-age firms," said the executive, who did not want to be named.