NFRA: Oversight over larger audit firms a must, says Vishesh C Chandiok

India remains the only major economy where CAs are still effectively self-regulated

National Financial Reporting Authority: Making the new regulator work

The Cabinet last week approved constitution of the National Financial Reporting Authority (NFRA) to oversee auditors of listed entities and large unlisted companies. The jurisdiction of the existing self-regulatory body, the Institute of Chartered Accounts of India (ICAI), will continue over its members and over those firms that are below the threshold to be announced by the government. 

Independence is not a science. It’s what others perceive, not what you feel. Independence is, therefore, about being seen to be independent. Post major frauds at the turn of the millennium, the audit profession,