Corporate affairs secretary Injeti Srinivas has said the “one-size fits all” approach cannot be put in place for the complex audit industry, adding that the issue of conflict of interest needs to be addressed. He also made it clear that whoever is practising audit in India will have to be regulated under the country’s regulations.

Amid concerns that foreign audit companies might be circumventing the country’s legal provisions, he said there has to be a method where network firms are also registered with the ICAI, which is the frontline regulator.

“Today, ICAI is registering individual members but is not registering firms. So, there are gaps and those also need to be addressed,” he said.

Overseas audit entities operate in the country through network firms model.

Many auditing entities and auditors have come under the regulatory scanner in connection with various corporate misdoings in recent times.