News

NFRA has no jurisdiction over small, medium cos; no direct nexus between quality, cost of audit: ICAI

NFRA has no jurisdiction over small, medium cos; no direct nexus between quality, cost of audit: ICAI

Coming out strongly against certain recommendations made by NFRA, chartered accountants' apex body ICAI on Sunday said the watchdog does not have jurisdiction over micro, small and medium companies, and asserted that audit helps in mitigating the risk of corporate governance lapses. The Institute of Chartered Accountants of India (ICAI) also stressed that "there is no direct nexus between the quality of the audit and the cost of conducting the audit as is mentioned in a consultation paper by NFRA as the auditors have to comply with the standards in auditing and other relevant standards while conducting an audit".

The latest comments from ICAI President Nihar N Jambusaria come less than two weeks after the National Financial Reporting Authority (NFRA) came out with a consultation paper on statutory audit and auditing standards for micro, small and medium companies (MSMCs).

In the consultation paper, for which public comments have been sought till November 10, NFRA said it was appropriate to revisit the requirement of compulsory statutory audit for all companies irrespective of their size and/or public interest

Top