In the last couple of years, the Government of India (GOI) along with the Ministry of Corporate Affairs and other regulatory bodies have introduced significant regulatory reforms with respect to financial reporting in India. These reforms were introduced with an objective to establish more robust regulatory environment, transparent and reliable financial reporting framework that can be benchmarked globally, and increase investor confidence.
As a result of the above reforms, both the industry and audit profession have witnessed significant amendments in various provisions of the Companies Act 2013 (the Act), adoption of new accounting standards and auditing practices that are at par with global parameters, and formation of new regulatory bodies to closely monitor regulatory compliances.
The above initiatives have resulted into a multi-fold increase in the responsibilities of the members of ICAI, who are acting as an auditor of various companies, and vested with the responsibility to express an opinion on true and fair view of the financial statements, in light of the new provision and amendments introduced in the Act.
Although with all the above initiatives, we have witnessed a fast-paced improvement in both financial reporting and audit quality in a very short span of time, there is a lot of work that still needs to be done to ensure that this improvement process continue to give positive results and make high audit quality sustainabl
