National Financial Reporting Authority (NFRA) is organising nationwide outreach programmes to enhance audit quality and promote sustainable audit practices. the outreach initiatives titled "Creating a Better Financial Reporting World" are aimed at enhancing audit quality and promoting sustainable audit practices for all audit firms, especially the small & medium-sized audit firms. Alongside the outreach series, NFRA initiated its first-ever audit firms survey, which received responses from 383 firms across India. The survey is intended to identify challenges affecting audit quality and will be used by NFRA to tailor its roles and responsibilities and enable constructive dialogue with all audit firms and practitioners.

NFRA has taken several key measures aligned with its mandate. These include recommending 40 revised Standards on Auditing and 47 amendments to Ind AS (Indian Accounting Standard), of which 44 have been notified. It continues to take disciplinary action for professional misconduct, thereby sensitising the audit profession regarding their responsibility in law and accounting and auditing standards.

NFRA also undertook audit quality inspections in December 2022, covering both firm-wide and individual engagement undertaken by the audit firms in respect of the Public Interest Entities audits. So far, 12 audit quality inspection reports have been published on the NFRA website.
 

Click the icon to access the PIB release in this regard-