ICAI Releases Handbook on Key Changes Under New Labour Codes

The Institute of Chartered Accountants of India (ICAI) recently released a handbook called “Guidance on New Labour Codes”.

The Ministry of Labour and Employment has introduced changes through the four labour codes. Auditors need to understand these changes, as they can have a significant impact on a company’s financial statements.

To help auditors do this properly, the Auditing and Assurance Standards Board (AASB) of ICAI has issued this handbook. This book helps auditors understand the new rules and consider their impact while planning and carrying out audits.

This handbook aims to help auditors understand the major audit issues that come up because of the new Labour Codes. It explains the key areas auditors should focus on, such as payroll costs, employee benefits, payment of statutory dues, and compliance with labour laws. It also covers how these items should be properly recorded, measured, and disclosed in the financial statements.

This handbook is helpful for auditors, audit firms, and accounting professionals in understanding, evaluating, and responding to the audit implications arising from the implementation of the new Labour Codes.