Page 2 - National Financial Reporting Authority

Audit regulator NFRA imposes 1-year ban, slaps fine on auditor for lapses

Audit regulator the National Financial Reporting Authority (NFRA) has slapped a fine of Rs 1 lakh and a one-year ban on an auditor for alleged professional misconduct in the audit of Anshu's Clothing Ltd for 2015-16. During FY2015-16, Anshu's Clothing's, now known as Aditri Gems & Jewels Ltd, shares were listed on BSE and Metropolitan Stock Exchange. In its order on Thursday, the regulator said it had levied a fine of Rs 1 lakh on Sachin Kansal. He is the proprietor of S Kansal & Associates and statutory auditor of Anshu Clothing for 2015-16. Besides, Sachin was also prohibited for one year from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate during the debarment period, it added. The order came after NFRA received information from the Ministry of Corporate Affairs (MCA) regarding irregularities observed in the financial statements of the company by the Financial Reporting Review Board .

Auditors must follow process, auditing must not be ticking exercise: NFRA

Audit regulator NFRA's chief Ajay Bhushan Prasad Pandey on Friday said auditors should follow the due process and auditing should not be just a "ticking" exercise. Highlighting the importance of financial reporting, he said that audit documentation should speak for themselves. "Audit should not be just ticking audit... It should be thinking audit," Pandey said. The National Financial Reporting Authority (NFRA) chief also said that trust in the reporting system is very important. He was speaking at a conference here organised by industry body Assocham.

NFRA slaps Rs 1.10 cr fine, imposes ban on two auditors, one audit firm

The National Financial Reporting Authority (NFRA) has imposed a ban as well as penalties totalling Rs 1.10 crore on three entities, including two auditors, for alleged professional misconduct in connection with the audit of Giri Vidhyuth (India) Ltd for 2019-20. Giri Vidhyuth (India) Ltd (GVIL) is a subsidiary of Coffee Day Enterprises Ltd (CDEL). The case pertains to diversion of funds worth Rs 3,535 crore from seven subsidiary companies of CDEL to Mysore Amalgamated Coffee Estate Ltd (MACEL), an entity owned and controlled by the promoters of CDEL. After markets watchdog Sebi shared its investigation report in April 2022, the audit regulator started probing the professional misconduct of the auditors of GVIL. Separately, NFRA imposed a fine of Rs 1 crore on Sundaresha & Associates and slapped a two-year ban on the audit firm. This debarment period of Sundaresha will start after the completion of two years of debarment period imposed by NFRA through its order in April in the case

NFRA to carry out conduct audit quality inspections of Big 4 network firms

The National Financial Reporting Authority (NFRA) will carry out audit quality inspections of five audit firms, including the network entities of the Big 4, and the onsite inspections are expected to be done next month, according to a top official. "Audit quality inspections will be mutually beneficial for the audit firms as well as NFRA. It will help an independent regulator like NFRA to get feedback and also help in overall improvement of the audit profession," the watchdog's Chairperson Ajay Bhushan Prasad Pandey told PTI in an interview. To begin with, he said the regulator "will carry out inspections of five audit firms, the Big 4 network firms -- Deloitte, Haskins & Sells LLP, BSR & Co LLP, SRBC & Co LLP and Price Waterhouse Chartered Accountants LLP -- and Walker Chandiok & Co LLP". BSR & Co LLP and SRBC & Co LLP are the network firms of KPMG and EY, respectively. PwC, Deloitte, EY and KPMG are the four major global entities in the auditing space and ...

NFRA warns auditors against non-accrual of interest on NPA borrowings

Mere classification of a firm's loans as NPAs by lender banks does not relieve the borrower from its liability towards payment of interest or the principal, the authority says

Auditor resignations continue to trickle in with 15 exits since April

On average, one auditor of a listed company has prematurely resigned every two weeks this financial year; pace seems to have picked up in September with 5 departures

NFRA finds big gaps in statutory audit of IL&FS Transportation Networks

The authority has also found the auditor to be in violation of ICAI Code of Ethics 2019

Human resources & regulatory autonomy

Statutory regulatory authorities need autonomy in staffing their organisations with specialists who have integrity and knowledge

NFRA needs to have standalone legislation, says chief R Sridharan

Further, he noted that the statute treats the NFRA as a subordinate office of the corporate affairs ministry

NFRA bans former Deloitte India partner for 7 years due to IL&FS case

Authority says independence of the statutory auditor in mind and appearance was totally compromised, accuses Udayan Sen of intentional reckless behaviour

After long wait, National Financial Reporting Authority gets own address

After camping in make-shift offices, it shifted to a upmarket central Delhi building just a few months ago that was previously the office of the Competition Commission of India

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