CA. Devender Pandey 🇮🇳’s Post

NFRA vs ICAI: Another Regulatory Clash? Once again, we witness a tussle between two regulators in India over the issuance of Auditing Standards. On 14th October 2024, The Institute of Chartered Accountants of India (ICAI) issued SQM1 and SQM2, which are based on international standards and set to replace SQC1. While their applicability is clear, the larger questions loom: 📍Can ICAI independently issue standards for auditors and audit firms? 📍Should the SQMs be sent to NFRA for their consideration? ▶️ According to a report in Financial Express NFRA board comprising members from SEBI, CAG, and RBI believes SQMs must be notified as auditing standards. However, ICAI maintains that SQMs are not auditing standards. Is ICAI's stance on SQMs justified? Share your thoughts in the comments below, and for more such discussions, feel free to follow CA. Devender Pandey 🇮🇳 #AuditingStandards #ICAI #NFRA #Regulations #Audit

ICAI’s New Standards are Legally Void - NFRA. NFRA board, including members like SEBI, CAG and RBI, is of the opinion that SQMs have to be notified as auditing standards (with legal backing) whereas the ICAI maintains that SQMs are not standards of auditing. The Institute of Chartered Accountants of India The Institute of Chartered Accountants of India (ICAI) #icai #NFRA #MCA #SEBI 👇🏻 👇🏻 👇🏻 https://shorturl.at/klsXK

💥 ICAI vs. NFRA: The Clash Over Auditing Standards The ongoing conflict between ICAI and NFRA revolves around NFRA’s push to amend India’s auditing standards. NFRA aims to align these standards with stricter global norms, emphasizing transparency and accountability. However, ICAI argues that the changes could favor large firms while sidelining smaller ones. The stakes are high: Will stricter standards improve audit quality or burden smaller firms? How will these changes impact young Chartered Accountants and the profession’s diversity? As decisions unfold, this battle could reshape the auditing landscape in India. What’s your view? #ICAI #NFRA #AuditingStandards

🚨 Breaking News in Audit Standards! 🚨 The National Financial Reporting Authority (NFRA) has raised serious concerns over the Institute of Chartered Accountants of India (ICAI)'s recent revision of audit standards, calling it “illegal”. The NFRA claims that ICAI bypassed mandatory consultations, leading to potential legal voids. 🔍 Key Points: NFRA’s Objection: ICAI revised standards without NFRA’s approval. Legal Implications: Changes may be void ab initio. Next Steps: NFRA to review in November board meeting. Stay tuned for more updates! #Audit #Finance #ICAI #NFRA #CorporateGovernance #Accounting

NFRA & ICAI yet again in the battlefield… As the economy races forward at lightning speed, particularly in a globalized structure, the importance of adhering to regulatory frameworks like NFRA is undeniable. For Chartered Accountants, ensuring our practices align with the latest guidelines is critical to maintaining both national and international credibility. However, the ongoing differences between ICAI and NFRA present a challenge we cannot ignore. This dispute raises several questions: When will this impasse end, and why has it occurred in the first place? While The Institute of Chartered Accountants of India (ICAI) has been the cornerstone of audit and assurance standards for decades, the recent developments with National Financial Reporting Authority (NFRA) underscore a shift in regulatory oversight. NFRA’s focus on heightened transparency and quality management systems aligns with global trends, but the lack of communication or consultation between the two bodies has created unnecessary friction. As practitioners, we find ourselves in a difficult position. It’s not just about following standards—it’s about ensuring that the standards we follow have the government’s and global market’s backing. Both ICAI and NFRA aim to uphold trust in financial reporting, yet this current lack of harmony creates uncertainty. The need for dialogue is urgent. The profession is evolving, and so must our regulatory bodies. A unified approach would not only strengthen the confidence in audits but also help India maintain its competitive edge on the global stage. As we approach the ICAI elections, ICAI candidates should definitely speak about this.. What do you think? #icai #nfra #disputes #regulations #ca

In my 6-8 years of professional experience, I have encountered several IRS and similar officials, and I have realised that their subject knowledge is not even 20% of that of an experienced Chartered Accountant. This is not just my personal observation, the government can conduct extensive surveys to assess the knowledge levels of its officials. However, this government seems to be trying to supersede the rights of our CA institute through its dump institution, the NFRA. I am confident that this body cannot match the knowledge of our ICAI. I believe NFRA is ineffective because it expects the ICAI to draft accounting and auditing standards, while NFRA merely takes credit for notifying them through the official gazette. Currently, there is an election campaign underway among ICAI members, and I am receiving more than 10 to 15 calls daily from different candidates of NIRC and CC. I have promised them that I will give my first preference if they provide satisfactory answers to these two questions: 1. Is NFRA above ICAI? If so, what is our importance? Are we merely laborers following the instructions of financially illiterate government officials? 2. Do you support the current government policies? If yes, then why are you asking for our votes? You may as well become part of NFRA. I believe that if this government continues for the next 10 years, especially with Smt. Nirmala Sitharaman in office, the ICAI will be completely destroyed. #NFRA #icai #ICAIElections

ICAI v/s NFRA - The battle continues. Out of 11 Members of NFRA attending the meeting, 8 Members-the representatives of CAG, RBI, SEBI, two independent experts Prof Narayanswamy, Retired Professor IIM Bangalore, Professor Sanjay Kallapur, Professor ISB, Hyderabad, two Full-Time Members of NFRA and Chairperson of NFRA were in support of the proposals. The three ICAI representatives expressed their disagreement with the proposals. The National Financial Reporting Authority (NFRA) convened its 18th meeting and approved critical reforms for quality control in auditing standards, including: - Revising SQC1 to SQM1 & SQM2, aligned with global ISQM1 & ISQM2, for Govt. notification (Sec 143(10), Companies Act 2013). - Recommending SA 600 (Revised) for Public Interest Entities, along with adjustments to SA 299 for joint auditors' liability, mirroring global norms. - Proposing SA 800/805/810 (Revised) and approving 33 Auditing Standards in line with international practices. - Advocating for Auditing Standards to be named IndSAs, aligning with countries like the UK, Australia & Singapore. Effective from 1.04.2026 upon Govt. approval. #ICAI #AuditReforms #NFRA #QualityControl

The ongoing controversy between **ICAI** (Institute of Chartered Accountants of India) and **NFRA** (National Institute of Financial Research and Analysis) revolves around their roles in India’s financial sector. While ICAI focuses on regulating Chartered Accountants and setting standards, NFRA emphasizes research and financial policy development. The tension arises from overlapping responsibilities, with both institutions pushing for influence in India’s financial practices. Can they work together for a stronger financial ecosystem? Your thoughts?  #ICAI #NFRA #FinancialRegulation #IndiaFinance #Accounting

In my opinion land scape of auditing is changing.Also there is a need to indianise some of the auditing standards.

Is ICAI losing all its power? Is NFRA the apex authority? (Audit Masala Case Study) Can ICAI intervene when NFRA is taking action? What recent verdict has the Supreme Court delivered on this matter? Watch the attached video to find the answers to your questions! #audit #nfra #icai