ICAI against exempting small firms from mandatory statutory audit

Says NFRA has no jurisdiction over MSMEs

The Institute of Chartered Accountants of India (ICAI) has defended its stance, saying it is not for exempting micro, small, and medium firms from mandatory statutory audit and that the National Fin­an­cial Regulatory Authority has no jurisdiction over MSMEs.
 
ICAI said the audit is a preventive check on companies, whether small or big, which enjoy limited liability of their shareholders.
 
“It is not within its purview to propose whether an audit of a particular class of companies is required or not. However, we may look at merits in having audits of these companies,” Nihar N Jambusaria, president, ICAI,