NFRA Digest

(Editorial Note: Given the increasingly important role played by NFRA in the context of auditing, BCA Journal will be continuing with reporting on NFRA developments. In February 2024, an article was published on the 5 NFRA inspection reports of 2023. This new feature titled NFRA Digest will cover orders, reports, circulars, notifications, rules, inspection reports, discussion papers, etc. BCAJ will cover some of these developments affecting the profession of audit with a view that members and readers can learn from these developments. The aim is to enable members to improve their audit processes and reduce their audit risk by improving quality and governance frameworks mandated by applicable standards and regulatory expectations. In this context, we are pleased to bring this new feature NFRA Digest to our readers, covering NFRA updates. This first few NFRA Digests will carry a condensed coverage of past NFRA publications to bring readers up to speed till December 2023.)

BACKGROUND ABOUT NFRA, ITS POWERS AND DOMAIN

The National Financial Reporting Authority (“NFRA”), constituted on 1st October, 2018 by the Government of India under section 132(1) of the Companies Act, 2013 (“the Act”), is an independent regulator set up to oversee the auditing profession and the Indian Acc