Audit can't replace a lender's due diligence: NFRA Chairperson Nitin Gupta

Audit cannot replace a lender’s due diligence, but the reliability of financial information available to lenders depends on the quality of auditors and audit processes, Nitin Gupta, chairperson of the National Financial Reporting Authority (NFRA), said on Tuesday at the Business Standard BFSI Insight Summit 2026in Mumbai. “While audit cannot substitute for a lender’s due diligence, the reliability of the information available to the lender depends upon the quality of the audit and the high-quality financial reporting of the concerned institution,” Gupta said. The discussion was moderated by Business Standard’s Gireesh Chandra Prasad.