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1 The Auditing and Assurance Standards Board of
ICAI issued “Implementation Guide on Resignation/ Withdrawal from an
Engagement to Perform Audit of Financial Statements” on 30th November
2018. Paragraph 25 of the aforesaid Implementation Guide which
prescribes applicability
of the aforesaid Implementation Guide is
reproduced below:
“Applicability
25.
This Implementation Guide is applicable in case of audits of all listed
entities. Further, in case of audits of banks, insurance companies and
other corporate entities, the guidance given in this Implementation
Guide be also followed, as applicable.”
2 SEBI has
issued a Circular dated 18th October 2019 regarding “Resignation of
statutory auditors from listed entities and their material
subsidiaries”. The aforesaid Circular prescribes various conditions to
be satisfied by listed entities, their material subsidiaries and their
statutory auditors. Some members have raised queries regarding
applicability of the aforesaid Implementation Guide to statutory
auditors of listed entities and their material subsidiaries.
3 It is hereby clarified that statutory auditors of listed entities
and their material subsidiaries are required to comply with the
aforesaid Circular.
4 This Announcement will come into force from immediate effect.
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