NFRA lists new annual reporting norms for audit firms

The move is aimed at increasing transparency in the management and administration of audit firms and their internal policy framework to ensure high quality audits and prevent conflict of interest while maintaining independence.

The auditing sector watchdog said the proposed requirements follow global best practices.

“Rule 8(2) of the NFRA Rules 2018 requires the NFRA to report on its governance practices and internal procedures designed to promote audit quality, protect its reputation and mitigate risks, including the risk of auditor failure. authorizes and may do so. Action may be necessary on the report,” NFRA said.

“Indian companies have become important constituents of the global economy and India has evolved as a global center of excellence in the delivery of financial reporting and auditing services to a large number of multinational corporations, which are governed by sound and high quality codes and practices. Raising expectations. to the global benchmark,” it added.

The ATR contains important information about the auditor’s operational activities, management, governance and ownership structures, and the policies and procedures necessary to deliver high-quality audits. The information contained in ATR will be useful to investors, audit committees, independent directors. And the people said,

The regulator said, “It is proposed to introduce ATR requirements in a graded manner for PIEs (Public Interest Entities) starting with statutory auditors of top 1,000 listed companies (by market capitalization) from the financial year ending March 31, 2023.” is proposed.” ,

An audit firm has to publish ATR within three months from the end of each financial year. The proposals are open for public comments on February 16.