NFRA to look at feasibility of ranking auditors

New Delhi, Mar 7, 2024

National Financial Reporting Authority (NFRA) chief Ajay Bhushan Prasad Pandey on Wednesday said the agency will assess the feasibility of ranking auditors on qualitative parameters and auditors ranking companies on governance matters.

Besides, he said, the agency responsible for assessing auditors or listed and large companies, will work with the Institute of Chartered Accountants of India and corporate affairs ministry about responsibility of auditors around fraud, which is an area of concern since the guidance issued on the issue has not been very helpful.

Addressing a conference, Pandey said, NFRA, which has reviewed and recommended 45 proposals of ICAI on new standards or amendments to existing ones, is working closely with the agency to ensure standards are closely aligned with global levels.

"Auditors are critical gatekeepers in financial information supply chain of public interest entities. Value of independent auditors report is not in doubt as it is relied upon by investors, ranging from large institutional investors to retail investors or individuals, who put hard earned life time savings or retiral funds," he said, adding, as an independent regulator NFRA is empowered to monitor and enforce compliance with requisite professional standards.

[The Times of India]