should the foreign accounting firm be allowed to operate in india?

Question

in india it is being debated that whether foriegn audit firm should be allowed to operate

Answer 1

Why not? If you want foreign investments, then your accounting systems and standards must be credible and you must have the expertise to handle MNC accounts as a result of globalisation. If you only learn Indian GAAP, how will you know the requirements of the Sarbanes-Oxley Act, not to talk of certifying that your companies are SOX compliant? Most of the Big 4 have partners who sit on the boards of standard setters or the IASB or IAASB or IFAC, and allowing them into the country can only be good for you. They bring with them much needed expertise which will be passed on to local staff, and with internationally recognised a/cg standards in place, you can see more investments coming in. That can't be bad.