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Big 4 Companies continue to rule India’s auditing market

According to an analysis conducted by ET Analysis recently, three of India’s big 4 companies, EY, KPMG, and the Deloitte group of affiliate companies were at the top of the Auditing companies on the chart at the end of the 3rd Quarter of 2022 (Q3, 2022).

 All the big 4 companies in India use certain affiliated entities to carry out auditing activities. The KMCG Companies will audit 147 companies, with EY Group being the leader with 153 assignments. The Big Four, which include the multinational accounting networks Deloitte, EY, KPMG, and PricewaterhouseCoopers, are the world's four largest professional services networks. The four are frequently grouped together because they have similar revenue and workforce sizes to the rest of the market, are thought to be equally capable of offering a broad range of professional services to their customers, and are seen as equally desirable networks to work in by those looking to start careers in professional services, primarily accounting. This is due to the fact that these start-ups routinely collaborate with Fortune 500 companies.

 Even during this cycle, major auditors have been wary about recruiting clients, particularly in the real estate and infrastructure sectors. According to Sudhir Soni, head of audit at BSR & Co LLP, audit firms carefully evaluate client approval as well as other variables such as governance, hazards, and industry knowledge. Over the last two years, the industry leader, EY group, has actively added important audits to its portfolio.

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Tax Base to be widened with Stricter Audits

Following record GST collection, the Central Board of Indirect Taxes and Customs (CBIC) is creating a strategy to broaden the tax base through tighter audits and inspections.

CBIC chairman Vivek Johri told ET in a post-budget interview that there is a lot of room to broaden the tax base and combat tax evasion by actively using digital forensic techniques, data integration, and artificial intelligence. So far, the board has discovered a revenue shortfall of 22,000 crore due to tax audits of 51,000 GST return filings and a revenue shortfall of 2,200 crore due to tax scrutiny of 31,000 GST returns. "We intend to actively use audits and inspection to improve compliance. We have made significant progress in terms of return filing %, but it is insufficient "Johri stated. "We also need to look at the quality of data that taxpayers are included in their returns."

 According to Johri, the budget's focus is on customs simplification.

He stated that while the board eliminated several exemptions last year, it has maintained some exemptions this year where there was either a "strong recommendation" from the ministries in accordance with 'Make in India,' or where they did not receive "timely inputs" from the industry or stakeholders.

https://economictimes.indiatimes.com/news/economy/policy/tax-base-to-be-widened-with-stricter-audits-cbic-chief-vivek-johri/articleshow/97560987.cms?from=mdr