NFRA inches ahead of ICAI in regulatory turf
Live MintThe National Financial Reporting Authority has secured an edge over the Institute of Chartered Accountants of India in regulating the audit and accounting profession, with the Solicitor General of India backing the former's powers in some respects. ICAI cannot investigate statutory auditors of listed companies and large unlisted businesses governed by NFRA, according to the legal opinion given by Solicitor General Tushar Mehta, two persons informed about the development said. The top lawyer also endorsed NFRA’s power to make independent recommendations to the government on audit and accounting standards, going beyond merely commenting on ICAI's recommendations. The legal opinion, which follows a request from the authority, comes at a time NFRA and ICAI have differed over harmonizing Indian audit standards with international standards on the norms governing auditing group financial statements. ICAI, which has regulated the sector for decades until NFRA was formed in 2018, has been of the view that making the principal auditor who audits the holding company responsible for the component auditor, the one who audits the subsidiary, will lead to the concentration of the audit market around big audit firms at the expense of other auditors, Mint reported on 14 November.
History of this topic
NFRA recommends revised audit standards for LLPs, ICAI objects to some changes
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NFRA’s revised norms could lead to audit market concentration: ICAI
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NFRA Board revises all audit standards despite ICAI dissent on some likely effective from FY26
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NFRA begins work to overhaul audit norms
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NCLAT Delhi: National Financial Reporting Authority Has Overriding Powers To Penalise CAs For Professional Misconduct
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