The ICAI, citing the Companies Act, 2013, asserts that only its Chartered Accountants (CAs) are authorized to perform these audits.
Conversely, the ICMAI argues that its Cost and Management Accountants (CMAs) are also qualified due to their legally mandated “cost audit” function under the 1959 Act, which involves extensive financial record verification.
Historically, the Ministry of Corporate Affairs (MCA) has supported the ICAI’s exclusive right, formally reinforcing this position in a 2018 circular that explicitly prohibited CMAs from conducting financial audits under the Companies Act, 2013.
However, in 2023, the Madras High Court issued an “interim stay order” suspending the MCA’s 2018 circular.