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MSMEs may soon get exemption from mandatory statutory audit; NFRA seeks suggestions on proposed move

MSMEs may soon get exemption from mandatory statutory audit; NFRA seeks suggestions on proposed move

Ease of Doing Business for MSMEs: Independent audit regulator National Financial Reporting Authority (NFRA) has sought comments from stakeholders and public at large on whether micro, small and medium enterprises (MSMEs), depending upon some criteria and threshold, should be exempted from the mandatory statutory audit under Companies Act, 2013. The comments were sought through a consultation paper on Wednesday. NFRA noted that the regulations relating to financial reporting and auditing ‘should not impose undue burden and cost on the regulated entities’ and that the overall regulatory framework should be ‘proportional to the size and type of the entities’ that are subject to such regulations. NFRA was set up by the central government in October 2018.

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