New Delhi, April 25 -- An industry body has asked the government to scrap a proposal to ban audit firms from offering non-audit services to clients for three years after their term ends.

It said the move will lead to operational inefficiencies, increased costs and hurdles for large corporate groups, and force companies to depend on smaller auditors, which could compromise service quality in complex areas.

Companies including EY, PwC, KPMG, Deloitte, BDO and Grant Thornton Bharat, among other audit firms, will be severely impacted if amendments proposed to the Companies Act of 2013 are implemented. These companies offer other advisory services besides audits for clients.

The Federation of Indian Chambers of Commerce and Industry (Ficci)...