NFRA issues inspection guidelines to improve quality control at audit firms

The National Financial Reporting Authority (NFRA) has issued guidelines to inspect select audit firms to identify areas and opportunities for improvement in the audit firm’s system of quality control, a statement said. 

“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 and quality control policy and processes,” NFRA said. 

The selection of the audit firm or the auditor for such inspection by NFRA would be based on assessment of risks in the audit environment. Other parameters, such as the size, composition, and nature