ICAI has clarified about the Statutory Auditor’s feedback or sharing of information on the client company with the Credit Rating Agencies (CRAs):
ICAI Announcement dt. 5 Jan. 2021: Clarification on Auditor Sharing Client Information with Credit Rating Agencies
Clarification on Statutory Auditor of a Company giving feedback to Credit Rating Agencies about Auditee Client
The Institute has been receiving queries from the members as to whether Statutory Auditor of a Company can give feedback of the said Company to the Credit Rating Agencies (CRAs).
It is hereby clarified that under the provisions of Chartered Accountants Act, 1949 it is not permissible to members to share client information with the CRAs, except if permitted by the Auditee client.
The members may ensure compliance with the above. Failure to comply with the same shall result in professional misconduct in terms of the of the provisions of Chartered Accountants Act,1949 and the Code of Ethics.