Audit firms in India are expressing significant concerns over proposed amendments to the Companies Act by the Ministry of Corporate Affairs (MCA), which aim to tighten rules on auditor independence. The proposed changes would prohibit audit companies from providing any non-audit services to clients for a period of three years following their audit tenure. Industry experts, including Yogesh Sharma (group managing director of BDO), have pointed out that while a cooling-off period exists in some countries, extending it to three years in India is unprecedented and may not necessarily enhance audit quality. Currently, firms like Deloitte, KPMG, and PwC already avoid non-audit work during audits, and the new rules might further limit their options. This could disproportionately impact mid-sized and smaller organizations that rely on ongoing advisory services, while larger firms might become more selective in client engagements, leading to increased market concentration. Additionally, audit costs are expected to rise as firms adjust their fees to account for lost advisory revenue. The proposed regulations also conflict with the government's push for multidisciplinary chartered accountant firms, complicating the audit landscape further.