Committee to assess auditor-company ties

New Delhi: The ministry of finance and company affairs has set up a high-level committee to look into issues relating to auditor-company relationships. The ministry panel will have to lay down parameters to protect the interests of various stockholders, including retail investors.

The committee will also examine connected matters, such as the independence of auditors, restrictions on non-audit consultancy work by auditors, rotation of auditors, proposal for random scrutiny of company accounts and system or regulation of the profession of chartered accountants, cost accountants and company secretaries. It will also look at the role of independent directors. The committee has been given a timeframe within which they will be submitting their reports, ministry officials say.

The committee will be headed by Naresh Chandra, former ambassador to the US. The other members include Ashok Chandak, chairman, Institute of Chartered Accountants of India (ICAI); A S Lodha, chartered accountant; R Krishnan, former president, ICSI; M K Sharma, vice-president (legal), HLL; Kalpana Morparia, deputy managing director, ICICI; Mahesh Vyas, managing director, Centre for Monitoring Indian Economy; Onkar Goswami, economist; Rajiv Mehrishi, joint secretary, Department of Company Affairs. S B Mathur, retired Indian Company Law Service officer, has been appointed as the committees secretary.