1. The Council of the Institute of Chartered Accountants of India (ICAI), at its 359th meeting held on September 16-17, 2016 considered an issue regarding the difference in requirements relating to the auditor’s rotation under the SQC 1, “Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements” issued by ICAI vis-à-vis the Companies Act, 2013. At the meeting, the Council noted the following points:
2. On consideration of the matter, the Council decided to issue a clarification on the issue and provide relaxation in the requirement of rotation of engagement partner given in paragraph 27 of SQC 1 for the transition phase (i.e. one time only for the financial year 2016-17).