Archive · 27 Dec 2025
India Pushes for Homegrown Audit Firms
The Indian government is working to help local audit firms grow bigger and compete with the Big Four global firms.
They are changing rules to let these firms advertise, form international partnerships, and work together with different professionals like accountants and lawyers.
The Institute of Chartered Accountants of India (ICAI) has also updated its rules to allow more advertising and independence.
There are some disagreements with the National Financial Reporting Authority (NFRA) about new standards, but they are working to resolve them.
In 2026, the focus will be on using technology more and improving the quality of financial reporting.
The government and audit firms are also supporting the Comptroller & Auditor General of India's decision to use local firms for auditing.
The Indian government is expediting regulatory changes to promote homegrown audit firms to compete with the Big Four.
An inter-ministerial group is considering changes to allow advertising, cross-border alliances, and multi-disciplinary partnerships.
ICAI has revised its code of ethics to allow liberal advertising and greater independence for CAs.
ICAI and NFRA have differing views on the revised SA 600 standards, but are working to resolve them.
NFRA is conducting workshops to enhance audit quality among small and medium firms.
- Who
- Indian government, ICAI, NFRA, domestic audit firms, CAs, LLP firms.
- What
- Regulatory changes and initiatives to promote homegrown audit firms.
- When
- Expedited in 2025, with further progress expected in 2026.
- Where
- India.
- Why
- To promote homegrown audit and advisory firms to compete with the Big Four globally.
- Regulatory Changes
- Government expedited changes in 2025 to promote domestic audit firms.
- Inter-Ministerial Group
- Set up to develop an ecosystem for domestic firms to compete with Big Four.
- Advertising Ban
- MCA notes advertising ban limits brand-building for CAs.
- Revised CoE
- ICAI tweaked code of ethics to allow liberal advertising and greater independence.
- SA 600 Standards
- ICAI revised standards for principal auditors to rely on component auditors.
- NFRA Workshops
- NFRA conducting workshops to enhance audit quality among small and medium firms.
- CAG's Decision
- Domestic audit firms support CAG's decision to engage CAs and LLP firms for auditing.
- Future Outlook
- Profession expected to shift to technology-driven transformation in 2026.