Regulatory scrutiny of audit firms may put tech industry in a spot

As the big four global audit firms and their affiliates face regulatory heat in the country owing to alleged auditing lapses, domestic IT services companies may have to brace for disruption in case any restriction is imposed on these audit firms.

Currently, Deloitte, EY and KPMG with their associates work as statutory auditors of most of the top league domestic IT services firms. KPMG affiliate BSR & Associates for instance works as the statutory auditor for market leader Tata Consultancy Services (TCS). The audit firm, which got the mandate in 2017, will continue as its auditor till financial year 2022.

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