Rating of audit companies may get more tangible to check frauds

Audit companies may soon be scored on parameters ranging from employee training and qualifications to client sensitisation and technology adoption.

The government is pushing for measurable indicators to reduce the risk of frauds and create a market demand for audit quality, according to senior officials. “Many audit firms have already started putting in place quality control mechanisms such as keeping audit and non-audit work separate… We want to bring in measurable indicators for an objective view of audit quality in the country,” a senior government official …