NFRA gets legal opinion on ICAI's powers to issue audit standards

'Only govt can take final call on audit standards'

The Solicitor General of India, in an opinion provided to the National Financial Reporting Authority (NFRA), said the Institute of Chartered Accountant of India (ICAI) does not have the power to issue any binding standards or guidelines for audit, according to people in the know.

 

It can also not take action against any audit firm but only Chartered Accountants, sources said.

 

The authority to issue any standards regarding audit and accounting vests only with the government and in this case the Ministry of Corporate Affairs (MCA).  “Neither NFRA nor ICAI have the power to issue binding standards of audit. They