In a move that could significantly alter the road map of corporate compliance, audit and consulting, three professional bodies are preparing a regulatory framework to allow a single entity to provide all such services to a company as early as this year.
The Institute of Chartered Accountants of India, the Institute of Company Secretaries of India and the Institute of Cost Accountants of India are finalising guidelines to make multi-disciplinary partnerships (MDPs) operational in India so that audit, accounting, tax, legal and business consulting services could become available under one roof.
The proposed regulations will allow MDP professional firms to be registered as limited liability partnerships.
The argument in favour of MDPs is that getting compliance services from a single firm – as opposed to multiple firms – can reduce costs and save time.
Experts say international experience can be useful in setting up these processes so that concerns over conflict of interest, especially if consultancy is bundled in, are addressed. Several countries have created safeguards to avoid the risks associated with combining accounting and consultancy under one umbrella.
“Business structures are so complex that companies now need holistic advice. MDPs will be better placed to provide that in an expeditious manner. A lot of information was lost in the cracks between single-discipline firms.Experts say the concept could also help globally competitive professional firms in the country.
