This is mainly because auditors as per the current regulations cannot offer non audit work to any of their clients.This comes within days after the Ministry of Corporate Affairs ( MCA ) released a consultancy paper where it sought comments on how to deal with firms that offer non-auditing work to their auditing clients. As per the regulations a firm which is a statutory auditor of any company or bank cannot do any other work and earn from it. This would mean that PwC will have to walk away from accepting consulting or tax work for all the companies and banks they audit.A consulting paper floated by the MCA is currently seeking comments from all the firms on the structural issues in the profession. For that panel of auditors need to be maintained from where the auditors can be appointed. While preparing such list, the assessment of the financial stability of the firms and anticipation of possible risks to a firm's ability to conduct high quality audits would be required,” the consultation paper reads.

Source: Economic Times February 13, 2020 10:36 UTC