In the list of many changes that has come up in the new Companies Bill, there is also a provision that says that the audit firms are going to be held accountable in cases of fraud and will be made to be a party in paying off to the retail investors.

The Ministry of Corporate Affairs in its communication to the parliamentary standing committee on finance has made many suggestions that say that if the auditors are made more accountable then it will be easier for the investors to have confidence.

These changes are the outcome of the Satyam scam where its regulator, PWC too was found involved in the inflating of the books of account.

If the recommendation is given a go-ahead then clauses will be made in the act which will be allow civil and criminal cases to be filed against the auditors in case they are found guilty in frauds. And for the implementation of the same, the government is looking forward to having an independent body which will control the quality of audit.

This body is going to be in line with Institute of Chartered Accountants of India (ICAI).