According to the National Financial Reporting Authority (NFRA), India’s audit regulator, over 1,000 statutory auditors representing a large segment of audit professionals have not filed annual returns.
Presenting a grim picture of India’s audit landscape, NFRA disclosed the names of 1,011 auditors, including sole proprietorship firms, who have not filed NFRA-2 forms for the reporting period of 2018-19.
Audit firms are required to file NFRA-2 form every year with their registration and permanent account number, number of partners, number of employees and payment details. The auditor has to disclose whether he has omitted an audit assignment of a firm in the last three years, or withdrew audit reports on the financial statements, or has agreed to use his name in the report. The auditor is also required to make a statement on its quality control policies for the reporting period.
Audit experts said these are important disclosures that an auditor is required to file. “A lack of such information will also come in the way of policy making,” said Vijay Kapoor, former director of the Institute of Chartered Accountants of India (ICAI).
The loose compliance culture comes to the fore when executives are trying to help audit professionals develop and diversify the audit market.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.