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April 2008

Rotation of audit partners compulsory from 2009

By Raman Jokhakar, Tarunkumar Singhal, Chartered Accountants
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New Page 4

8. Rotation of audit partners compulsory from
2009


In what could be a significant deterrent to corporate frauds,
the concept of rotation of partners received a green signal from the apex body
for chartered accountants, Institute of Chartered Accountants of India (ICAI),
and mandates change of partners after seven consecutive years with a listed
company.

The step, cleared by ICAI, will be operational from April
2009 and is expected to significantly reduce complexity between individual
partners in audit firms and their assigned companies, something that has been a
cause behind many of the big corporate frauds to have hit the financial world.

(Source : Times News Network, 25-2-2008)


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