Joint Representation on NFRA Consultation Paper by 7 Organisation on Statutory Audit

7 Organisations has given their Joint Representation on NFRA Consultation Paper on Statutory Audit. 7 Organizations, i.e. Bombay Chartered Accountants’ Society, Karnataka State Chartered Accountants Association, Chartered Accountants Association, Ahmedabad, Chartered Accountants Association, Surat, Lucknow Chartered Accountants’ Society, The Auditors’ Association of Southern India and Association of Chartered Accountants, Chennai have given a joint representation on NFRA Consultation Paper on Statutory Audit.

As per the representation, NFRA’s Consultation paper Exceeds Jurisdiction as it is beyond NFRA Scope and Mandate as per Companies Act, 2013 and Rules framed for NFRA. It also Lacks Innovative ideas and has Confusion & Contradictions.

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The idea of MSMC as adopted / invented by NFRA is arbitrary and requires better reasoning to start a discussion around it on anything. Secondly, NFRA is certainly not mandated to undertake this task.

There is a need for separate Standards on Auditing, Accounting Standards and even a Companies Act, 2013 for smaller companies. Such criteria needs to be established very carefully and judiciously. This requires a larger debate and involvement. The present paper seems too shallow and lacking adequate data to even proceed in this direction.

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