An Indian CA firm can do a lot of useful work for US clients and US CPA firms: offshore review, workpaper preparation, accounting support, reporting conversions, and component work. What it generally cannot do is sign a US audit report on its own authority. Getting the roles written down before work starts avoids most of the problems.
Last reviewed: 17 October 2026. Facts checked. We searched the web for US audit standards and licensing context but did not open any state board of accountancy rule, AICPA professional standard, PCAOB rule or ICAI circular on cross-border work. The licensing and independence points below are therefore general and need confirmation with the relevant US state board, the US firm's own policy and ICAI before any engagement is accepted. No fee figures or volume claims are made.
Three common models
1. Offshore support to a US CPA firm
The US firm holds the client relationship and signs the report. The Indian firm (or team) performs defined tasks under the US firm's methodology and supervision: tie-outs, workpaper preparation, first-level review, tax-provision support, disclosure checklists.
- The US firm stays responsible for the opinion and for supervising and reviewing the work.
- Client confidentiality and consent matter. US firms commonly need the client's agreement to send data offshore, and data security expectations are high.
- The Indian team works in the US firm's tools and templates. Following the firm's methodology matters more than local habit.
2. Component or group work
For a US-parented group with an Indian subsidiary, the group auditor sends instructions to the local auditor. The local auditor performs the work and reports back on a defined scope. The mechanics resemble the framework in SA 600 on using the work of another auditor, and the US group auditor will have equivalent requirements under its own standards.
If the parent is an SEC registrant, the group auditor follows PCAOB standards, and the instructions will reflect that. Read PCAOB vs AICPA standards to understand which regime sits behind them.
3. Non-audit services to US-linked businesses
This includes bookkeeping, management reporting, financial statement conversions, due diligence support, and internal audit or controls documentation. These services are not audits, but independence still matters if the same firm audits the client or its parent.
What an Indian firm usually cannot do
- Sign a US audit or review report. Audit signing authority in the US depends on state licensing and, for SEC issuers, PCAOB registration. An Indian CA qualification does not by itself confer it. Confirm with the relevant state board of accountancy.
- Assume independence is satisfied. Independence rules differ between ICAI, the AICPA and the SEC. A relationship clean under one set may not be under another.
- Take over the judgement. Offshore staff prepare and review. Key judgements, such as materiality, significant risks, going concern and the opinion itself, stay with the responsible firm.
US-GAAP conversion work
Many US-linked Indian businesses keep books under Indian GAAP (Ind AS or the older standards) and need US-GAAP numbers for a parent. A conversion engagement maps trial balance accounts to US-GAAP reporting lines and adjusts for framework differences. Our overview of key differences between Ind AS and US GAAP lists the areas to check.
A sound conversion file contains:
- The trial balance under the local framework.
- A mapping to US-GAAP captions.
- A schedule of each adjustment, with the standard it relies on and the supporting calculation.
- A reconciliation from local-GAAP profit to US-GAAP profit and equity.
- Sign-off by someone with US-GAAP experience.
The reconciliation is the control. If it does not tie, the conversion is not finished.
Questions a US CPA firm will ask before engaging an Indian firm
- What experience does the team have with US standards and the firm's methodology?
- How is client data protected and where is it stored?
- Who supervises the work, and how will review be evidenced?
- How are conflicts and independence checked?
- What are the turnaround expectations during busy periods?
- Will the work be done in the US firm's systems?
Having written answers to these is a practical selling point.
What to put in the engagement letter
- The tasks performed, and that the US firm retains responsibility for the opinion.
- Standards and methodology to follow.
- Confidentiality, data location and access rights.
- Review sign-off requirements.
- Independence confirmations from both sides.
- Termination and data return.
Getting started
Firms new to this usually do better beginning with a narrow, repeatable service, such as workpaper preparation or conversion schedules, than with a broad promise. A narrow service builds a record, and a record is what US firms look for in a new offshore partner.
For firms planning to use technology on such work, the same rules apply as anywhere: the US firm's data policies come first, and any AI tool used on client data needs the client's consent and a clear record of what was reviewed by a person.
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