TFS Gulf
  • All categories
    • inPractice
    • Entrepreneur Story
    • Finance Leaders
    • Videos
TheFinanceStory
No Result
View All Result
  • Login
  • Register
  TFS Gulf
  • All categories
    • inPractice
    • Entrepreneur Story
    • Finance Leaders
    • Videos
The finance story
No Result
View All Result
  • Login
  • Register
The Finance Story
No Result
View All Result

NFRA inspecting Audit quality of top 5 firms – Deloitte, BSR & Co, SRBC &Co, PwC, and Walker Chandiok & Co

National Financial Reporting Authority - NFRA, is an independent regulator managed by the Ministry of Corporate Affairs, Government of India. It has started inspecting five audit firms.

Preeti Mondal by Preeti Mondal
Published date: 30th December, 2022
Last edited date: 27th June, 2023
SHARE (672)
NFRA inspecting Audit quality of top 5 firms - Deloitte, BSR & Co, SRBC &Co, PwC, and Walker Chandiok & Co
Share on FacebookShare on Twitter

NFRA

National Financial Reporting Authority, also known as NFRA, is an independent regulator managed by the Ministry of Corporate Affairs, Government of India.

It was formed in October 2018 under the Companies Act 2013, to oversee the auditing profession and Indian Accounting Standards.

NFRA has all the listed companies in India or outside India, as well as unlisted public companies, under its jurisdiction;

There have been several cases where auditors and audit firms have come under the scrutiny of regulators for failure in their conduct. NFRA doesn’t condone such unjust acts of auditors.

It has come out with various Audit Quality Review (AQR) reports.

NFRA is to protect the public interest, and interests of investors, creditors, and others associated with the companies or corporate bodies governed by the Authority.

The regulator published its audit quality inspection guidelines in November with the objective to improve the quality of the profession. The guidelines are quite similar to that of the best practices, the international audit regulators follow.

Its inspections will identify areas and opportunities to improve the audit firms’ system of quality control.

NFRA checking audit quality of five firms

NFRA has commenced its probe on five audit firms, to check their audit quality. These are mostly going to be onsite inspections.

The report is expected to be announced by the end of this financial year.

Ajay Bhushan Pandey, Chairperson of NFRA and Former Finance Secretary, Ministry of Finance, Government of India, had told the media that the firms in question would be;

  • Deloitte Haskins & Sells LLP
  • SRBC & Co LLP
  • Price Waterhouse Chartered Accountants LLP
  • Walker Chandiok & Co LLP
  • BSR & Co LLP

First, the regulator will try to understand the firms’ governance/management structure, and policy manuals. It will then review the quality control system of the entire firm, and a select audit file review in the selected audit areas.

NFRA is to pick 4-5 companies that have been audited by the abovementioned audit firms and look at their respective financial statement audits for FY2020-21.

In India, regulations do not permit foreign auditing firms to operate. Hence KPMG carries out audits in India under the name of BSR & Co, an auditing firm it bought. BSR & Co was an auditing firm founded by B.S. Raut in Mumbai. Deloitte carries out audits in India under the names of C.C. Chokshi & Co, Fraser & Ross, PC Hansotia & Company, SB Billimoria & Company, and Deloitte Haskins & Sells. Price Waterhouse is the Indian affiliate of PwC. EY carries out its Indian audit operations through SR Batliboi & Associates.

Improving Audit Process

It’s an important step taken by the NFRA that will inspect the firm’s internal controls, governance structure, audit methodology, team members, and more relevant aspects to assess its quality of service.

Mr. Pandey also told the media that they would focus on improving the auditing processes. 

They wouldn’t take drastic measures unless the audit firms under scrutiny have made some significant mistakes, been non-compliant with SQC (Standard on Quality Control), conflicts of interest, or accounting standards.

The chairperson of NFRA further explained that the goal of having a regular audit inspection structure is to give constructive feedback on the audit quality of firms. 

This will in turn would avoid serious audit failures. Audit quality inspections are integral to the functioning of independent audit regulators, worldwide.

It was also mentioned in (Press Information Bureau) PIB’s press release that in response to NF RA’s consultation paper “Enhancing Engagement with Stakeholders’ in 2021, many stakeholders had suggested onsite inspection of audit firms by the regulator.

They wanted the audit firms to comply with auditing standards and guidance.

Scrutiny of the Audit quality of a firm can be advantageous to both NFRA and the firms.

 

Preeti Mondal

Preeti Mondal

Recommended for you

UAE’s Private Sector now employs 152,000 Emiratis
Dubai

UAE’s Private Sector now employs 152,000 Emiratis

4th August, 2025 | 3 mins read
Grant Thornton U.S. acquires Latin American AI-savvy outsourcing firm
News

Grant Thornton U.S. acquires Latin American AI-savvy outsourcing firm

4th August, 2025 | 2 mins read
U.S. Accounting Firm Wipfli gets Private Equity from Grant Thornton’s backer
News

U.S. Accounting Firm Wipfli gets Private Equity from Grant Thornton’s backer

4th August, 2025 | 3 mins read
PwC Middle East gets a seat at PwC’s Global Board
Big 4

PwC Middle East gets a seat at PwC’s Global Board

4th August, 2025 | 3 mins read
UAE's influencer's now need a License to post
Dubai

UAE’s influencer’s now need a License for monetising their content

4th August, 2025 | 3 mins read
CAs retain exclusive Tax Audit rights; CMAs, CS excluded
Chartered Accountant

CAs Retain Exclusive Tax Audit Rights; CMA, CS Officially Excluded

23rd July, 2025 | 4 mins read
Next Post
Why this CEO took a sabbatical after 33 years of working. Tells CXOs to plan it out before doing the same.

Why this CEO took a sabbatical after 33 years of working. Tells CXOs to plan it out before doing the same.

Start conversation Cancel reply

Your email address will not be published. Required fields are marked *

Popular posts

  • KPMG Partner quits and goes Boutique with high end advisory firm: Now has 5+ offices & 75+ team

    KPMG Partner quits and goes Boutique with high end advisory firm: Now has 5+ offices & 75+ team

    0 shares
    Share 0 Tweet 0
  • Big 4 firms in India: Inside Deloitte, PwC, EY & KPMG career prospects, growth and salaries

    0 shares
    Share 0 Tweet 0
  • Designations in HDFC Bank: From Joining as an Assistant Manager to climbing to the rank of Managing Director.

    80 shares
    Share 0 Tweet 0
  • Big 4 India Partners jumping from one firm to another: High alert as Partner poaching surges

    0 shares
    Share 0 Tweet 0
  • CA Firms Kirtane & Pandit, Guru & Jana, SSKM unite to build India’s Next Big Global Consulting Firm

    0 shares
    Share 0 Tweet 0
  • Hierarchy level in ICICI Bank: Thinking of joining ICICI Bank? Here’s an overview of the employee grades.

    175 shares
    Share 0 Tweet 0
  • ICAI Under Fire: Women Removed from Front Row at CA Students’ Conference Following Guest’s Demand

    0 shares
    Share 0 Tweet 0
  • EY, PwC, Deloitte surpass 3,300 Partners. EY added 1000+ new Partners

    0 shares
    Share 0 Tweet 0
  • UK firm outsourced accounting work to India but quality dropped: Now established his own offshore unit

    0 shares
    Share 0 Tweet 0
  • Deloitte India offers ‘Golden Handshake’ to senior Partners aged 55 & above. Plans to elevate young partners.

    0 shares
    Share 0 Tweet 0
The Finance Story

The Finance Story empowers finance professionals—CFOs, consultants, accountants, tax experts, and bankers—to navigate critical market shifts, industry disruptions, and emerging technologies & trends.

How? We spotlight key opportunities in India and globally, equipping finance professionals with the insights and strategies to drive business growth, optimize decision-making, and position their companies at the forefront

Quick Links

  • Finance
  • Partners
  • Privacy and Policy
  • Terms of use

Follow us

  • /TheFinanceStory
  • @TheFinanceStory
  • /TheFinanceStory
  • @thefinancestory_com
  • TheFinanceStory

© 2022. The Finance Story. All Rights Reserved.

No Result
View All Result
  • TFS Gulf
  • Entrepreneur Story
  • Finance Leaders
  • Videos
  • Login
  • Sign Up

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies to personalize your experience. By continuing to visit this website you agree to our use of cookies.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Book 1:1 call with industry expert