CAG engaging CA firms will not compromise auditor's independence, says ICAI
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Chartered accountants' apex body ICAI on Friday said the engagement of CA firms by the Comptroller and Auditor General (CAG) will not compromise the independence of the apex auditor.The comments from ICAI comes in the backdrop of Madurai MP S Venkatesan (CPM) writing a letter to President Droupadi Murmu objecting to the CAG's plan to hire CA firms for auditing of central autonomous bodies will strengthen the auditing process.In a detailed statement, the Institute of Chartered Accountants of India (ICAI) said the engagement of CA firms by the CAG is in no way a compromise of its independence or constitutional function."Rather (it is) a strategic step to ensure effective coverage, domain-specific audit quality, and timely audit execution," it said.Further, the statement said, the move is fully supported by professional standards, and ethical safeguards embedded in the ICAI's framework."Additionally, the scheme is expected to contribute to the organisation's (CAG) capacity building which would be used to augment compliance and performance audits of the autonomous bodies," it added.In the letter to the President on June 3, the MP claimed that the move dilutes the independence of CAG and principles envisaged by the Constitution.On Thursday, Deputy Comptroller and Auditor General (Commercial) Anand Mohan Bajaj said hiring CA firms for auditing of central autonomous bodies will strengthen the auditing process.
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