National Financial Reporting Authority NFRA

The government has invited applications for the posts of chairperson and three full-time members in the National Financial Reporting Authority. The National Financial Reporting Authority (NFRA) is an independent regulatory body overseeing financial reporting and auditing standards in the country. For chairperson, the applicants will be a person of eminence, ability, and integrity with at least 25 years of expertise in accountancy, auditing, finance, or law and for full-time members, they must have at least 20 years of experience in the same fields, according to a release. The chairperson will receive a consolidated monthly salary of Rs 5.62 lakh without house and car or the pay and allowances are equivalent to a secretary to the government of India, as per the NFRA's (Manner of Appointment and other terms and conditions of Service of Chairperson and members) rules. For full-time, members will have the option of drawing either a consolidated monthly salary of Rs 5 lakh or receiving

The court order was in response to petitions filed by Deloitte Haskins & Sells LLP, SRBC & Co LLP, and several chartered accountants challenging the constitutional validity of NFRA

The National Financial Reporting Authority (NFRA) has highlighted significant shortcomings in the audit practices of BSR & Co LLP, a KPMG sub-licensee, particularly in related party transactions. The audit regulator's inspection was conducted in August 2024, which reviewed three BSR audit engagements from the FY ending March 2022 and March 2023. In a 13-page inspection report, NFRA found lapses related to auditing standards and compliance with the Companies Act 2013. Among the critical observations were deficiencies in verifying related party transactions. The inspection report also revealed a complex series of transactions initiated by an unnamed company, involving its promoter entity. NFRA noted that the company raised Rs 550 crore through non-convertible debentures (NCDs) and invested Rs 650 crore in compulsorily convertible preference shares (CCPS) of the promoter entity. This transaction was reportedly used to facilitate debt repayment by the promoter entity. NFRA also ...

The Authority also approved the other 33 Auditing Standards in line with corresponding Global Standards

The NFRA's proposed change stems from the alleged audit failures at companies like Reliance Capital Ltd., Coffee Day Global Ltd

The difference of opinion between ICAI and NFRA on the revision of auditing standards in India has come to the fore once again

2 chartered accountants of the company penalised too and barred from undertaking audits for some years

One of the more serious issues raised by the NFRA in its report is about violation of Section 144 of the Companies Act, which prohibits firms from providing certain non-audit services to audit clients

NFRA has issued orders against several audit firms in India in the past, including the "Big Four", around the auditors' independence and their non-audit work

To refer the matter to regulator if lapses found

If one reads the Companies Act, Code of Ethics, and Standards of Audit and Quality Control in a harmonious manner, then one would not have any confusion about definition of non-audit services, he said

The National Company Law Appellate Tribunal (NCLAT) has upheld the penalty imposed by the National Financial Reporting Authority (NFRA) on auditors of Dewan Housing Finance Corporation Ltd (DHFL) observing that it has retrospective jurisdiction in the case of misconduct. Dismissing a bunch of appeals by DHFL's auditors, NCLAT in its 156-page long order said NFRA has a "clear and required retrospective jurisdiction" over the alleged offences by delinquent Chartered Accountants for a period even prior to its formation. Earlier in April 2023, NFRA had passed an order imposing a fine of Rs one lakh each on 18 DHFL auditors, barring 14, for six months to a year, citing misconduct in branch audits. Four of them - Harish T K, Ayna Tamtam, M Baskaran and Sam Varghese - who were debarred for one year had challenged the order by filing an appeal before NCLAT. The preliminary ground of the appellants was that NFRA does not have any retrospective jurisdiction since the watchdog was constituted

Salaries of partners; audit, non-audit fees; details of network firms among information to be shared

Move comes in backdrop of Congress MP Karti Chidambaram's letter airing concerns over results

Experts want the authority to set some limit on the time it would spend on on-site visits

Inspections will consist of firm-wide review of audit quality and individual file reviews on test-check basis to evaluate the level of compliance with applicable auditing standards

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

Standards are for firms that are not required to follow Indian Accounting Standards. Most of these would be private, with very small net worth or turnover or indebtedness, according to NFRA

The audit review report has found violations with respect to the assessment of the use of the going concern assumption by the management

The independent watchdog for auditing profession has sought applications for 10 posts of consultants and senior consultants on one-year contract basis