NFRA finds huge gaps in Deloitte's audit of IFIN, says will examine further

The audit and accounting regulatory body has advised Deloitte to take action to revamp its processes and ensure compliance

Deloitte Haskins and Sells LLP (DHS) has failed to comply with the standards of auditing and compromised its independence by providing prohibited non-audit services for substantial fees in the matter of IL&FS Financial Services (IFIN), an audit quality review by the National Financial Reporting Authority (NFRA) has found.

In its report issued on Thursday, in the first case referred to the audit regulatory body by the government, the NFRA said quality control systems and processes at DHS were “severely inadequate and ineffective”. 

“The instances of failure are of such significance that DHS did not have adequate justification for issuing the audit report