"Considering the wide-ranging discussions with stakeholders about the future of audit, PW India firms believe that this voluntary action will further strengthen the audit profession in India and enhance trust in the Indian capital markets, society and Indian economy at large," it said in a statement.
Subramanian Vivek, Partner, Price Waterhouse said that given the important role that auditing plays in the Indian economy, everyone that relies on audit needs to have the same high level of confidence in an auditor's independence, objectivity and effectiveness.
"Today's announcement is a demonstration of our commitment to invest in audit quality with a view to continually improve and strengthen it, along with auditor independence," Vivek said.
The jurisdiction of the NFRA -- which would be an oversight body for auditors -- extends to all listed companies as well as large unlisted public companies.
On February 7, the corporate affairs ministry proposed significant amendments to existing regulations to enhance independence and accountability of auditors.
Against the backdrop of instances of many auditors and auditing entities coming under the regulatory lens for alleged misdoings, the ministry came out with a a consultation paper on proposed legal changes regarding audit.
The paper is to 'examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability'. NKD RAM