Auditors must do basic groundwork, not rely too much on AI: NFRA Chairman

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

Auditors must not have any conflicting interest during the audit exercise and also not rely too much on artificial intelligence (AI). With increasing reliance on technology, AJAY BHUSHAN PANDEY, chairperson of National Financial Reporting Authority (NFRA), says in a conversation with Ruchika Chitravanshi that NFRA would check if audit firms have kept to their word in the follow-on inspection this year. NFRA will shortlist another seven to eight firms for an annual inspection this year. Edited excerpts:

What do you think of the state of the audit profession in India, having gone through the process of inspecting the Big Five