The minister of state for corporate affairs PP Chaudhary has said that his ministry is working closely with professional regulatory bodies to improve the regulations for the auditors and corporate professionals. According to him, the ministry is looking to improve the fabric of corporate governance in India. Besides, he said that the ministry is also probing recent instances of auditors resigning from companies on various grounds.
The minister’s remarks come against the backdrop of some auditing entities coming under the scanner of the ministry following various complaints. Besides, he said that the National Financial Reporting Authority (NFRA) can investigate chartered accountants and their firms, and its powers extend to listed companies and large unlisted public companies. Recruitment of chairperson/ members for the NFRA has already begun.
Talking about instances of auditors resigning from companies citing lack of access to financial information and other issues, Chaudhary said that the ministry is examining such recent cases of resignation. However, he noted that this is a regular practice and too much should not be read into such cases. Listing out the immediate priorities, he said that the ministry would be completing the action against struck off companies and ensure effective working of the Insolvency and Bankruptcy Code (IBC).