• Register
Return to: Home > News > Big Four > Reports: Indian firms moving away from revenue targets

Reports: Indian firms moving away from revenue targets

A number of firms in India, including the Big Four, have removed or relaxed revenue targets for their audit partners, according to a report from The Economic Times.

Typically, partners at firms have ambitious revenue targets, with hitting these targets strongly linked to their financial compensation.

 Now, however, the report suggests a number of partners have been told they would either not have any revenue targets, or the link between their pay and the revenue they generate would be delinked.

The accounting industry has come under pressure internationally, following a number of high profile audit failures and accounting scandals. Notably PwC ‘s Indian firm was hit with a two year ban by the Securities Exchange Board of India (SEBI) from issuing audit certificates to any listed company in India after an investigation into the Satyam Computer services scam from nine years prior.

Removing the link between achieving high revenue and payment could be seen as a way of breaking some of the tension between a desire for sales and the need to challenge company figures and ask difficult questions.

According to the Economic Times, industry trackers confirmed the caution is the result of SEBI and the Reserve Bank of India coming down heavily on auditors in cases of financial fraud.

The International Accounting Bulletin has reached out to the Big Four in India and will update when responses are received.

Top Content

    South Africa: sensing new opportunities

    It has been an interesting couple of years for the profession in South Africa. A number of high-profile scandals have brought the profession and the role of auditors into sharp public focus, brewing a distrust towards accountants and a large expectations gap. Joe Pickard reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.