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May 2010

Operations of foreign accounting firms — India would want full reciprocity

By Raman Jokhakar
Tarunkumar G. Singhal
Chartered Accountants
Reading Time 2 mins
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Turning the table on the Big Four audit firms about their
India plans, Corporate Affairs Minister Salman Khurshid has asked them to spell
out unambiguously if they intend to start full-fledged operations in India, and
be fully accountable for their operations in the country if permits are given.
Also, India would want full reciprocity —that is, permission for Indian
accounting firms to carry out full-fledged operations, with the same level of
freedom, in the Big Four’s home countries.

The Minister said that these audit firms — KPMG, Deloitte
Touche Tohmatsu, Ernst & Young and PricewaterhouseCoopers — haven’t stated
clearly enough how they would roll out their operations in India.

President of the Institute of Chartered Accountants of India
Amarjit Chopra echoed the Minister’s views, stating that though foreign firms
are very keen to carry out full-time practice in India they shy away from taking
any responsibility. “Foreign audit firms are doing surrogate practice in India.
They want to practice here, but do not want to take any responsibility. That’s
astonishing,” he said. Chopra added even ICAI would look at ways to tighten the
auditing practice in India in the coming months.

(Source : www.indianexpress.com, dated 19-3-2010)

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