Taxsutra’s Post

🔍 #ICAI #NFRA #AuditStandards 📢 In the world of financial reporting and audit standards, the clash between ICAI and NFRA over the proposed overhaul of Key Audit Standard SA 600 has been a hot topic of discussion. The issue revolves around the proposed amendments by NFRA, which have sparked a debate on the independence of auditors and the impact on the audit quality. 📚 The Institute of Chartered Accountants of India (ICAI) has expressed concerns about the proposed changes, highlighting the potential implications on the audit profession, while the National Financial Reporting Authority (NFRA) has defended its stance, emphasizing the need for stringent regulations to uphold the quality and integrity of audits. 🔗 As professionals in the financial and auditing sector, it's crucial to stay informed about these developments and understand the potential implications for our industry. The clash between ICAI and NFRA emphasizes the need for constructive dialogue and collaboration to find common ground and ensure the best outcomes for the profession. 🤝 Let's engage in constructive conversations and stay updated on the evolving landscape of audit standards. What are your thoughts on this clash and its potential impact on the auditing profession? Share your insights below! #Audit #FinancialReporting #Regulations #Professionals #ICAIvsNFRA #AuditQuality 🔍 Note: AI-powered post. May contain errors.

Tick Talks#50: Is ICAI DC order on EY Retrograde?, EAC Opinion, PCAOB Inspection Guide on Audit Quality, KAM Trends & More! Read the newsletter here >> https://buff.ly/3ULzOvP #Taxsutragreentick #TickTalk50 #ICAI #EY #DCOrder #AuditQuality #PCAOB #KAM #Trends #TickTalks #AccountingInsights #EACOpinion #ProfessionalStandards KNAV US

Update on #SA600: ICAI calls for a pause on the NFRA exposure draft ICAI has now released an exposure draft with their side of explanation on SA 600 and calling for a pause on the NFRA process. Again, without commenting on the debated matter, 2 important points: 1. It’s not good for the Country and the Profession if two regulators fight it out like this publicly. Both should resolve things out and come up with a joint plan. 2. ICAI has mentioned in the press release that “The responsibility for these consolidated financial statements does not lie with the key management personnel and Boards of Directors of the holding company but with the Boards and key management personnel of the respective subsidiary companies” - is this true? Or a bad case of drafting error! https://lnkd.in/gTqnpanR

Are NFRA’s actions a Ticking Time Bomb for the ICAI? The recent decision to grant the National Financial Reporting Authority (NFRA) retrospective powers is causing ripples across India’s financial ecosystem, and it’s clear that the Indian The Institute of Chartered Accountants of India (ICAI) is feeling the heat. This move, which allows NFRA to scrutinize and take action on financial statements and audit reports dating back several years, has raised serious concerns.  While the intention is to bring greater transparency and accountability to the accounting profession, the implications could be far-reaching and not necessarily in a good way. From an ICAI perspective, the retrospective powers of NFRA feel like an ominous cloud hanging over the profession.  The sudden extension of NFRA’s reach not only undermines the authority of the ICAI but also opens the door to potential conflicts. Auditors, who have followed the standards set by the ICAI, could now find themselves in the crosshairs of NFRA investigations that stretch back years.  This creates a legal and professional quagmire where retrospective evaluations could penalize auditors for decisions they made in good faith, according to the standards of the time. Moreover, the retrospective powers raise valid concerns about the lack of legal clarity.  By allowing NFRA to assess past audits, it introduces a level of uncertainty and risk. The question arises: will auditors be held accountable for mistakes they were not in a position to foresee, especially given how auditing standards and practices have evolved? For the ICAI too, this is a critical moment.  Will it stand up for its members, defending its authority to regulate auditing standards and practices?  Or will it allow the NFRA to encroach on its territory, weakening the very fabric of professional independence in the process?  The tension is palpable, and it’s a situation that calls for serious introspection and action from all parties involved. In conclusion, the retrospective powers granted to the NFRA are a double-edged sword.  While they aim to enhance accountability, they also create unnecessary tension and risks for the auditing profession. #icai #nfra #retrospectiveinspection #questiononicai #charteredaccountants

Harmony and mutual understanding are the cornerstones of any civilization. They are more relevant when two or more statutory bodies work towards a noble common goal—to provide trust and confidence to investors and lenders. This is significantly more relevant to ICAI and NFRA, as they overlap certain work areas. #nfra #icaiv #ca #audit

Tick Talks #51: SEBI-NFRA Team Up, Latest EAC Opinion, Commonly Found Errors in FS, PCAOB on Audit Documentation & More! Read the Newsletter here >> https://buff.ly/3WAbgqD #Taxsutra #TaxsutraGreentick #EAC #audit #accounts #NFRA #SEBI KNAV US

Many have asked about understanding the SA 600, we have something interesting, click to learn more https://lnkd.in/gr4Jwek9 SA 600 addresses the role of principal auditors in audits involving multiple components, such as branches or subsidiaries. The debate revolves around whether principal auditors should be accountable for the entire group audit: Current Standard: Principal auditors are responsible only for their direct work, not for other auditors’ contributions on different components.. International Norms: Require principal auditors to oversee and be accountable for the entire group’s financials. NFRA vs. ICAI: NFRA supports aligning with international standards, but ICAI opposes, citing potential disadvantages for smaller firms and broader implications for India's audit landscape. This phased approach aims to balance audit quality with practicality, ensuring fairness across firms of varying sizes. Probe42 The Institute of Chartered Accountants of India #audit #probe42 #nfra #SA600 #ICAI

NFRA Findings Expose Individual Auditor Failures, Not Standard Inefficiencies: ICAI Prez Raises Concerns Over Revised SA 600 and SA 299 #ICAI #NFRA #AuditorFailures #RevisedSA600andSA299 #taxscan #taxnews Read More: https://lnkd.in/gJmyvY8S

 🔵 Audit Will Not Be Same Anymore :( For good or for bad? Here’s everything you MUST KNOW 👇 The National Financial Reporting Authority (NFRA) has launched a BOLD reform to overhaul the way auditors verify corporate financials in India. NFRA is revising all 38 Auditing Standards & two Quality Management Standards set by The Institute of Chartered Accountants of India. This is huge because, in the current practice, Auditing Standards issued by the ICAI are deemed final. SA 600 is already in process which deals with consolidated financial statements of business with more updates expected soon. 🧐 Why such reforms are needed? The move comes after corporate scandals like Satyam, IL&FS, and others highlighted the need for stricter audits and accountability. NFRA’s approach might have caused some disagreements with ICAI, but this isn’t a conflict. It’s about meeting the mandate of Section 143(10) of the Companies Act, 2013. Quiz for Smart CAs: What is the mandate of Sec 143(10) of CA’2013? Correct answer will get a “Practical Audit Resource”. Let’s gooo! My fellow CAs, what do you think about this BOLD move of NFRA? Would love to read your take on this. #AuditingStandards #NFRA #ICAI #AccountingStandards

NFRA Recommends LLP Auditing Standards NFRA, in its 19th meeting, proposed applying 40 SAs and SQMs to LLP audits under Section 34A of the LLP Act 2021. Supported by most members and ICAI, the standards are set to take effect from 1 April 2026, pending government approval. https://lnkd.in/g3Ngvwue