Statutory Audit of Private Companies – Proposed Changes under the Corporate Laws (Amendment) Bill, 2026 and JPC Recommendations

0

The requirement of statutory audit has always been one of the fundamental compliance obligations under the Companies Act, 2013. Presently, every company, whether public or private, is required to appoint a statutory auditor and have its financial statements audited in accordance with the provisions of the Act.

However, the Corporate Laws (Amendment) Bill, 2026 has proposed a significant departure from this long-standing principle by empowering the Central Government to exempt certain classes of companies from the requirement of appointing auditors. The proposal has generated considerable discussion among corporates, professionals and industry bodies, particularly in relation to private companies and small companies.