ICAI released Collection of Learnings from NFRA Orders and Reports

The Institute of Chartered Accountants of India (ICAI) has released a collection of learnings from NFRA orders and reports.

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

– Warren Buffett

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 comprehensive resource for both professionals and students, featuring a collection of case study-based NFRA orders and reports. By analysing these cases, professionals can gain useful insights into potential red flags and solve issues that lead to organisational failures ahead of time.

This publication presents a compilation of NFRA orders and reports, providing a rich repository of insights into the regulators’ expectations of auditing firms and auditors. This collection of case studies is rigorously handpicked to provide important learning opportunities for our members, students, and audit professionals.

The Chairman of the Western India Regional Council of ICAI encourages readers to delve into the content of this publication and engage in discussions to deepen their understanding of the evolving regulatory landscape and best practices in auditing. “By learning from the experiences of others, we can collectively enhance the quality and credibility of the auditing and accountancy profession in India,” he added.

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 the 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.

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

To Read More – Click Here