Committee for Aggregation of CA Firms (CACAF) has been constituted during 2024-25 to make concerted efforts in reviewing and revising various guidelines pertaining to CA firms, one of which is the Guidelines for Networking of Indian CA Firms 2021.

Networking Guidelines were introduced in the year 2005 and were proactively revised by the Institute twice in 2011 and 2021 respectively, yet the expected momentum could not be gained. The challenges paving way to this conservative approach of the CA firms can be categorically attributed to Non-Recognition of the Alliance/ Network, Restrictions on account of Independence of Auditors, Inability to handle Internal Frictions with growing constituent firms, Lack of understanding the pros & cons of Networking, Non-availability of a Unified Platform for collaborating, among others.

A new network model seems requisite to meet the challenges stated above to the extent possible. Accordingly, the Committee for Aggregation of CA Firms (CACAF) proposes a new model of networking, Approach III named as LLP Firm Network Model. This model is expected to tap the synergy of incoming LLP firms as partners, giving lot of scope and flexibility for practicing freely and most prominently provide recognition by the regulators to the combined strength and massive geographical presence. This should indeed provide as the first stair of the ladder of becoming top Indian CA Firm.

It is envisaged that this Network Model should be worthy of facilitating greater coordination among the constituent firms to deliver consistent quality in audit seamlessly across all locations on PAN India basis. It would also enable the CA firms to tap the synergies of the combined strength and resources.

The downloadable version of the Exposure Draft is available at: https://resource.cdn.icai.org/80371cacaf64551a.pdf

The last date for sending the comments on the aforesaid Exposure Draft has been extended till 7th June 2024. The same may be sent at https://forms.gle/FLYviiZZut2iw7ZEA or at cacaf[at]icai[dot]in. Comments are most helpful if they contain a clear rationale and, where applicable, provide specific suggestions.

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