The Institute of Chartered Accountants of India (ICAI) has strongly opposed against a recent proposal of audit regulator National Financial Reporting Authority (NFRA) regarding mandatory audits norms for small firms.
“NFRA does not have jurisdiction over micro, small and medium companies. It is not within its purview to propose whether an audit of a particular class of companies is required or not,” the accounting body’s president, Nihar N Jambusaria, said.
Audit is considered to be one of the pillars of the effective corporate governance system in companies, as it also helps in mitigating the risk of failure in implementation of corporate governance, the ICAI argued.
“The government can introduce a single platform for reporting by companies so that the same information is not required to be filed with various regulators,” Jambusaria suggested.
NFRA had prepared a Consultation paper explaining the issues involved and providing the data and information required for responding to the questions raised in an informed manner, with the objective to seek the comments/suggestions of the wider stakeholder group and the public at large on questions raised.