ICAI issued Compilation of Learnings from NFRA Orders and Reports

The Institute of Chartered Accountants of India (ICAI) has issued a Compilation of Learnings from NFRA Orders and Reports.

The Indian regulatory landscape has witnessed a significant shift in recent years, with an increased focus on ensuring the quality of audits conducted by professional firms. The National Financial Reporting Authority (NFRA) has played a pivotal role in this regard, issuing orders and reports that provide valuable insights into the expectations and standards expected of audit firms.

This publication is a valuable resource for both professionals and students, providing a collection of case study-based NFRA orders and reports. By reviewing these cases, professionals can obtain useful insights into possible red flags and address issues that have resulted in organizational failures.

This publication is a compilation of NFRA orders and reports, providing an extensive source of insights into the expectations regulators have set for auditing firms and auditors. This collection of case studies has been carefully created to provide invaluable learning opportunities for our members, students, and audit professionals.

The NFRA is a regulatory body in India established under the Companies Act, 2013 with a primary role to monitor and enforce the compliance of auditing and accounting standards and oversee the quality of services of the associated profession, to ensure the quality and reliability of financial reporting.

NFRA has issued in recent past various orders and reports, particularly in the form of Audit Quality Review Reports (AQRR) and Financial Reporting Quality Review Reports (FRQR). The objective of this publication is to consolidate and highlight the important learnings from some of the NFRA orders, AQRRs, and FRQRs. By understanding and learning from these documented observations, we can aim to understand the expectations of NFRA and enhance the quality of financial reporting and auditing practices.

“It’s good to learn from your mistakes. It’s better to learn from other people’s mistakes.”

– Warren Buffett

This compilation embodies that philosophy by providing insights from publicly available NFRA orders/reports, helping us all avoid similar pitfalls in our professional practices.

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