CAG releases new policy for Empanelment of CA Firms/LLPs for FY 2023-2024

The Comptroller and Auditor General of India (CAG) has released a new policy for the Empanelment of Chartered Accountant Firms & LLPs for FY 2023-2024. As per CAG, the criteria for empanelment and selection of statutory auditors have been arrived at after due consultation with the Institute of Chartered Accountants of India (ICAI).

There is a 14-point criterion for the selection of firms/LLPs for appointment as auditors where the audit fee is up to Rs 5.00 lakh. However, for selecting firms/LLPs for Major Audit where Audit fees are more than Rs 5.00 lakh, there are Additional criteria over and above 14-point creteria.

The total period of appointment of a firm/LLP as auditor shall be for three financial years provided the firm/LLP continues to be eligible for the said audit, its point score has not reduced by more than 25 percent over the previous year’s point score and the firm/LLP has not been debarred from an appointment in the year by this office.

A firm/LLP who retires/surrenders from an audit of a Maharatna Company, shall not be entitled for allotment of audit of any Maharatna Company for a period of four years after such retirement/surrender,

In the case of a Maharatna/ Navratna Company, a firm/LLP after retiring/surrendering is not considered for the same Company for a period of five years.

Click on the below-mentioned link to Download the Policy Document.