Challenges in enhancing audit quality

The most discussed topic today in the audit profession is audit quality. The Ministry of Corporate Affairs (MCA) recently published a consultation paper, the success of which is predicated on a strong framework, consistent application, and engagement. I have examined certain key concepts that impact audit quality, the central theme of the MCA paper.

Audit reporting on subsidiaries’ accounts

To avoid negative consequences of an auditor not having visibility over a corporate group, the paper requires mandatory comment by the parent's auditor on its subsidiaries' accounts. This cannot be effectively achieved by reviewing the subsidiary auditors' work and will be inefficient to