ICAI backs rotation of partners every 5 years

Pankaj Doval, New Delhi
The Times of India
Following the outcry over role of auditors in the Satyam scam, auditing regulator ICAI has recommended major changes in auditing processes, which include among other things, joint auditors for big companies and rotation of partners every five years.

These recommendations of a high-powered committee of ICAI, formed after the Satyam scam, will now be considered by the government. The committee, headed by ICAI president Uttam Prakash Aggarwal, was tasked with suggesting changes required to make the auditing process in India more effective and foolproof after the Satyam scandal shook corporate India and led to the arrest of auditors of Price Waterhouse.