ICAI

Applicability of Implementation Guide on Resignation/ Withdrawal by Auditor – ICAI

Announcement on Applicability of “Implementation Guide on Resignation/ Withdrawal from an Engagement to Perform Audit of Financial Statements” to Statutory Auditors of Listed Entities and their Material Subsidiaries

ICAI Announcement 

1 The Auditing and Assurance Standards Board of ICAI issued “Implementation Guide on Resignation/ Withdrawal from an Engagement to Perform Audit of Financial Statements” on 30th November 2018. Paragraph 25 of the aforesaid Implementation Guide which prescribes applicability of the aforesaid Implementation Guide is reproduced below:

“Applicability

25. This Implementation Guide is applicable in case of audits of all listed entities. Further, in case of audits of banks, insurance companies and other corporate entities, the guidance given in this Implementation Guide be also followed, as applicable.”

2  SEBI has issued a Circular dated 18th October 2019 regarding “Resignation of statutory auditors from listed entities and their material subsidiaries”. The aforesaid Circular prescribes various conditions to be satisfied by listed entities, their material subsidiaries and their statutory auditors. Some members have raised queries regarding applicability of the aforesaid Implementation Guide to statutory auditors of listed entities and their material subsidiaries.

3    It is hereby clarified that statutory auditors of listed entities and their material subsidiaries are required to comply with the aforesaid Circular.

4    This Announcement will come into force from immediate effect

Chairman
Auditing and Assurance Standards Board

Vice-Chairman
Auditing and Assurance Standards Board

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