The National Financial Reporting Authority (NFRA) prolonged its public consultation to decide on waving off the law audit obligation of the small firms till the finish of November as per the mentioned order. 10th Nov is the former last date to receive the comments and recommendations.
The audit regulator Sept has issued a public consultation paper on the ‘statutory audit and auditing standards for micro, small and medium companies (MSMCs)’ providing details towards how small organizations are currently preparing their audit.
NFRAs preliminary investigation revealed that the fee furnished to auditors through the larger micro, small and medium organizations are behind what the audit when executed under the letter and spirit of the standards of an audit will need.
Economies of the world urge towards the audit under the law for the small companies only in the case of some min criteria towards the acceptance of the public interest stated audit regulator. Despite in India the income tax audit is not important in which the turnover is Rs 10 cr or lower mentioning that there is not more than 5% of transactions that are furnished in cash. GST audit needs to be done along with that.
NFRA mentioned that it was specific to recheck the need for the essential statutory audit for all companies whatever be the size and/or public interest. As per NFRA across the world’s biggest economies, India is unique towards the same relating to statutorily mandating obligatory audit for all firms, whatever be the size and characteristics.
“In view of the significant role played by companies in India in the economic growth and development of the nation, it is essential that the regulatory environment is conducive to support, and not a burden, the growth in business and economic activities of these entities, the regulator said while seeking comments.”
