The Indian government wants its CCI (Competition commissioner of India) to examine the issues of their dominant position in the Indian Audit market.
CCI (Competition commissioner of India) is the country’s antitrust body is assigned by the government to assess whether the so-called ‘Big Four’ auditing firms and their affiliates are affecting competition in any manner.
They are required to conduct a survey or an investigation to assess if there is any abusing power are used by Big four i.e. PwC, EY, Deloitte and KPMG for domination the Indian Audit market.
“The ‘Big Four’ do auditing work for almost 60 per cent of the top 500 companies that trade on the National Stock Exchange (NSE)”.
One of official said that “If you look at the top 500 companies in India, they are totally dominant and the Big Four seem to be sharing the work … whatever be the reason there seem to be entry barriers”.
Last year, after an accounting fraud, PwC and it’s all units were banned from auditing any listed companies for two years in India.
An EY firm was also barred last month from conducting certain statutory audit assignments until April 2020.
Recently, In case of IL&FS, Deloitte Haskins & Sells and a KPMG affiliate are also in case of violating several auditing standards with the Ministry of Corporate Affairs (MCA), which may ban them for five years.