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. This new feature titled NFRA DIGEST will cover orders, reports, circulars, notifications, rules, inspection reports, discussion papers, etc. BCAJ seeks to bring to light some of the important changes 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 is another in a row and will cover the circulars issued by NFRA to date and NFRA orders post-December 2023)

BACKGROUND ABOUT NFRA ORDERS/CIRCULARS:

The National Financial Reporting Authority (“NFRA”) was constituted on 1st October, 2018, by the Government of India under section 132(1) of the Companies Act, 2013 (“the 2013 Act”). Since its inception, the NFRA has issued 67 orders till today highlighting significant deficiencies in the audit process, reporting by the auditors and other matters in relation to the audit o