Reliance on MNCs for strategic audits must be reduced: MCA

INDIA AIMS TO CUT RELIANCE ON GLOBAL AUDIT FIRMS BY PROMOTING HOMEGROWN MULTI-DISCIPLINARY PARTNERSHIPS, REFORMING REGULATIONS, AND BOOSTING DOMESTIC COMPETITIVENESS

- RUCHIKA CHITRAVANSHI

India needs to limit its reliance on multinational corporations (MNCs) for strategic audits and consulting in order to strengthen its economic sovereignty and achieve the goal of Atmanirbhar Bharat, the Ministry of Corporate Affairs (MCA) said in an office memorandum released on Wednesday.

While inviting comments from all stakeholders on the establishment of Indian multidisciplinary partnerships (MDPs), the MCA noted that despite a world-class talent pool, domestic firms have remained marginal players.

This is particularly true in high-value audits and consulting, partly due to structural and regulatory barriers.

‘The MCA secretary Dipti Gaur Mukherjee led-committee on creation of an Indian Big Four firm had recently held its first meeting. It discussed the way forward to support the expansion of domestic smaller accounting and audit firms, according to official sources.