Nfra

We have been able to stabilise auditing as an institution: NFRA Chairperson

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

NFRA flags lapses in audit quality of three firms, including Deloitte

The National Financial Reporting Authority (NFRA) has flagged certain lapses in the audit quality of three audit firms. The observations have been made in NFRA's three separate inspection reports of SRBC & Co LLP, Deloitte Haskins & Sells LLP and Walker Chandiok & Co LLP. In its report on SRBC & Co LLP, the regulator conducted audit quality inspections in 2024 and the scope included focus on three audit areas -- Internal financial control over financial reporting on revenue, related party transactions and impairment of non-financial assets. SRBC & Co LLP is member of two networks -- Ernst & Young Global network and SR Batliboi & Affiliates. According to the regulator, SRBC & Co LLP should put in place a robust process to address all threats to independence, which may be created due to the exclusion of certain services from the term non-audit services. Further, the audit firm should reconsider its policy to exclude NFRA-regulated audit clients' holding ..

Quashing of showcause notices: NFRA moves apex court against HC ruling

Court order pertains to quashing NFRA's 11 show cause notices to multiple auditors and CAs

NFRA to release 7 papers to help stakeholders ask key audit questions

To enhance the quality and the level of interactions between auditors and companies' audit committees, NFRA chief Ajay Bhushan Prasad Pandey has said the watchdog plans to come out with six to seven papers having sets of questions that will cover various aspects of statutory audits. "The papers will also help the stakeholders in asking the right questions related to audits," he told PTI. Constituted in October 2018, the National Financial Reporting Authority (NFRA) has been making efforts to improve audit quality and has passed over 80 orders against various entities for auditing lapses. "These papers will also act as a guidance for companies' audit committees, independent directors, and board of directors in understanding the nuances as well as critical aspects of auditing," the NFRA Chairperson said. In the planned series, the first paper on 'Audit of Accounting Estimates and Judgments Part 1: Expected Credit Losses (ECL) under Ind AS 109' was issued on January 10. "NFRA plans t

NFRA slaps a penalty of Rs 2 crore on Deloitte Haskins for ZEEL audit

NFRA found that ZEEL had misappropriated its money and made unauthorised transactions with related parties without the approval of the audit committee, the board, and shareholders

Auditing of companies has improved in last 3-4 years: NFRA Chairperson

Auditing of companies have improved in the last three to four years, NFRA chief Ajay Bhushan Prasad Pandey has said and highlighted the need for board as well as audit committee members to engage with auditors which will help in raising red flags and prevent possible corporate failures. The National Financial Reporting Authority, constituted in October 2018 under the companies law, has passed more than 80 orders, including in Cafe Coffee Day, DHFL and a few other large cases, for lapses that led to corporate failures. At the helm of the watchdog for more than two years, Pandey told PTI in an interview that many of the auditors were doing and are doing a good job. "Overall, auditing of companies has improved over the last 3-4 years," the NFRA Chairperson said. However, he noted that there is a certain section among the auditors and among the board members who were not that sensitive and alert due to which there have been many corporate failures. "People should be aware that these ar

NFRA moves to extend company audit rules to limited liability partnerships

Experts noted that while specific standards on auditing exist for companies, such standards are yet to be notified for LLPs

Aligning with global audit norms key to Viksit Bharat vision: NFRA Chairman

Ajay Bhushan Pandey says the latest reforms proposed to India's audit standards are historic and long overdue

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

'Only govt can take final call on audit standards'

Concerns about new audit norms misplaced: NFRA's Ajay Bhushan Pandey

For a Viksit Bharat, India cannot afford audit standards that are inferior, NFRA Chairperson Ajay Bhushan Pandey said

ICAI to knock on MCA door against proposed audit standard revision

The NFRA, after its board meet, has suggested revisions to 40 Standards on Auditing

NFRA likely to propose audit norms for LLPs at Nov 25 board meeting

The meeting will be attended by representatives of the Institute of Chartered Accountants of India (ICAI), which had earlier drafted a Guidance Note on financial statements of LLPs

NFRA likely to notify revised audit standards soon amid ICAI concerns

ICAI feels that given the complexities of the Indian market, the revised standards will concentrate audit work in the hands of a few big firms

It's collective responsibility to improve corporate governance: NFRA Chief

National Financial Reporting Authority (NFRA) Chairperson Ajay Bhushan Prasad Pandey on Thursday underscored the need for improving corporate governance and aligning Indian auditing with global standards to attract investors. Observing that there is a need to continue to take cognizance of corporate governance reforms, he said company management, independent directors and audit committee, statutory auditors, shareholders, and regulators constitute five lines of defence to improve corporate governance. "It is our collective responsibility...we should continue to create trust. Improve the corporate governance, and we should work in that direction," he said, addressing an event organised by industry chamber Assocham here. Adopting global auditing standards would improve the trust of global investors in the Indian economy, which is on its way to becoming the third largest from the present fifth position, he said. Making a pitch to align Indian audit practices with the global standards,

NFRA slaps penalty of Rs 2 crore on Coffee Day auditors, bars CAs

NFRA found that the auditors deliberately chose to shy away from their statutory duty to report the fraud and protect the public interest

NFRA aims to adopt best global accounting, auditing standards: Chairman

NFRA Chairperson Ajay Bhushan Prasad Pandey on Tuesday said the regulator's efforts are to incorporate best global standards, which are required for the country to have big homegrown accounting and auditing firms. Amid NFRA and chartered accountants' apex body ICAI having differences over proposed changes to an accounting standard related to group audits, Pandey also flagged that there have been a series of corporate failures in the country and emphasised the need for high-quality reporting and auditing frameworks. Speaking at a webinar on 'Risk-Based Approach of ISQM-1: Building High Quality Audit Firms', Pandey said the desire is to incorporate best global standards. "We cannot create global audit firms without adhering to global standards," he added. ISQM refers to International Standard on Quality Management. He also said there has been a series of corporate failures in the last ten years and the amount involved is around Rs 2 lakh crore, he noted. The National Financial Repo

NFRA to seek views from Big 5 audit cos on second draft inspection report

The NFRA report highlights serious violations of Section 144 of the Companies Act, which bans firms from offering certain non-audit services to their audit clients

ICAI at loggerheads with NFRA on proposed revision of audit standards

The revised standards hold that the group auditor is ultimately responsible for the audit

NFRA slaps fine of Rs 4.5 cr on auditors for Reliance Capital audit lapses

The National Financial Reporting Authority (NFRA) has slapped penalties totalling Rs 4.5 crore on an audit firm and two auditors for professional misconduct for alleged auditing lapses of Reliance Capital's financials in 2018-19. A fine of Rs 3 crore has been imposed on Pathak H D & Associates, Rs 1 crore on Parimal Kumar Jha and Rs 50 lakh on Vishal D Shah. Besides, Jha and Shah have been debarred from taking up audit work for 10 years and 5 years, respectively, according to an order. Jha was the Engagement Partner (EP) and Shah was the Engagement Quality Control Review (EQCR) Partner for the statutory audit of Reliance Capital for 2018-19 fiscal. For 2018-19, the company was jointly audited by Price Waterhouse & Co LLP (PW) and Pathak HD & Associates. PW reported suspected fraud regarding loans and investments amounting to approximately Rs 12,571 crore to some group companies. In the order dated April 12, the NFRA said that despite the reporting of suspected fraud and ...

DHFL branch audits: NFRA penalises 18 auditors, debars them for 6-12 months

The National Financial Reporting Authority (NFRA) has imposed penalties on 18 auditors and also debarred them for varying periods for lapses with respect to audits of various branches of housing finance company DHFL. Penalties totalling Rs 18 lakh or Rs 1 lakh each has been imposed on the auditors for their professional misconduct, according to 18 separate orders passed by the regulator. Also, they have been debarred for a period of six months to one year from "being appointed as an auditor or internal auditor or from undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate". Out of the 18 auditors, 4 have been debarred for 6 months and the remaining 14 auditors have been restrained for 1 year. Following media reports of alleged siphoning of public money of around Rs 31,000 crore and the Enforcement Directorate's reported action in April 2020 on an alleged banking fraud of about Rs 3,700 crore by the