National Financial Reporting Authority

Panel recommends a risk-based approach to restrictions on non-audit services and cooling-off norms, while cautioning against expanding NFRA's powers at the cost of ICAI's autonomy

Don't mistake AI's fluency for accuracy, warns NFRA chairman

The audit regulator flagged independence issues in Deloitte and Walker Chandiok, citing concerns over non-audit services and compliance gaps in inspection reports

The broader challenge lies in the growing complexity of modern corporate structures and the pressure on audit firms to balance commercial interests with professional independence

A Parliamentary panel has suggested that regulator NFRA conduct sectoral studies to identify industry-specific accounting and auditing challenges as well as put in place sector-specific accounting guidance to help boost investor confidence. The National Financial Reporting Authority (NFRA), set up by the government in 2018 under the Companies Act, 2013, regulates auditors and monitors compliance with accounting and auditing standards by companies. It also oversees the quality of audit services to ensure reliability in financial reporting. In a report tabled in the Lok Sabha on Thursday on the corporate affairs ministry's demand for grants 2026-27, the Standing Committee on Finance has made certain recommendations in relation to the NFRA. According to the report, the corporate affairs ministry should take expeditious steps to operationalise the separation between audit quality review and disciplinary functions within the NFRA to strengthen procedural clarity, institutional independen

Currently, the NFRA executive body is entitled to discharge all functions and duties assigned to the authority as a whole

The authority, however, is in talks with the Reserve Bank of India (RBI) to cross-check the investigations, including a forensic audit, that the central bank has conducted so far to avoid duplication

The corporate affairs ministry aims to complete the probe into crisis-hit Gensol Engineering Ltd and around 18 other related companies in the next three to five months, a senior official said on Tuesday. Separately, the National Financial Reporting Authority (NFRA) is conducting a preliminary enquiry into Gensol Engineering following a reference from the markets regulator Sebi, NFRA chief Ravneet Kaur said. Gensol Engineering has come under the regulatory scanner for alleged fund diversions and governance lapses, with Sebi, in April, barring the company's promoters Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for various violations. The senior official said that the probe seeks to find everything when things are hot and the aim is to complete the probe into Gensol and around 18 other related companies in the next three to five months. The ministry is implementing the Companies Act, 2013, under which it has various powers to deal with instances of corporate ..

NFRA's domain extends to audit firms of listed companies and unlisted companies with over ₹500 crore paid up capital or ₹1,000 crore annual turnover

Pandey says audit firms have taken corrective steps following the regulator's inspections, which are among the pivots the organisation is working on

He further added that the regulatory body is not passing disciplinary orders in abundance and is instead focussing on inspections

The HC order of February 7 quashed show-cause notices issued by the auditing standards watchdog to audit firms, including Deloitte Haskins & Sells LLP and SRBC & Co LLP

The government has invited applications for the posts of chairperson and three full-time members in the National Financial Reporting Authority. The National Financial Reporting Authority (NFRA) is an independent regulatory body overseeing financial reporting and auditing standards in the country. For chairperson, the applicants will be a person of eminence, ability, and integrity with at least 25 years of expertise in accountancy, auditing, finance, or law and for full-time members, they must have at least 20 years of experience in the same fields, according to a release. The chairperson will receive a consolidated monthly salary of Rs 5.62 lakh without house and car or the pay and allowances are equivalent to a secretary to the government of India, as per the NFRA's (Manner of Appointment and other terms and conditions of Service of Chairperson and members) rules. For full-time, members will have the option of drawing either a consolidated monthly salary of Rs 5 lakh or receiving

The court order was in response to petitions filed by Deloitte Haskins & Sells LLP, SRBC & Co LLP, and several chartered accountants challenging the constitutional validity of NFRA

The first part of the interaction series draws auditors' attention to potential questions that audit committees or boards of directors may ask regarding accounting estimates and judgements

The National Financial Reporting Authority (NFRA) has highlighted significant shortcomings in the audit practices of BSR & Co LLP, a KPMG sub-licensee, particularly in related party transactions. The audit regulator's inspection was conducted in August 2024, which reviewed three BSR audit engagements from the FY ending March 2022 and March 2023. In a 13-page inspection report, NFRA found lapses related to auditing standards and compliance with the Companies Act 2013. Among the critical observations were deficiencies in verifying related party transactions. The inspection report also revealed a complex series of transactions initiated by an unnamed company, involving its promoter entity. NFRA noted that the company raised Rs 550 crore through non-convertible debentures (NCDs) and invested Rs 650 crore in compulsorily convertible preference shares (CCPS) of the promoter entity. This transaction was reportedly used to facilitate debt repayment by the promoter entity. NFRA also ...

Sources said that the regulator could soon notify the new standards for select entities

Action after NFRA debarred Maiya for 10 years in a probe related to Coffee Day

The difference of opinion between ICAI and NFRA on the revision of auditing standards in India has come to the fore once again

The senior official said that ICAI is not opposed to implementing the revised ISA 600 but is trying to figure out the path to do so. ICAI would be taking up this issue in its next council meeting