NEW DELHI: After months of debate, the Nationwide Monetary Reporting Authority (NFRA) on Monday determined to maneuver in the direction of the Worldwide Normal of Audit 600 (ISA 600) for all listed corporations, barring public sector corporations and state-run banks and their branches.
Individually, the Institute of Chartered Accountants of India (ICAI) additionally agreed to revise the Normal on High quality Administration (SQM), a mechanism for high quality administration for audits or critiques of economic statements, the place public consultations have been accomplished. ICAI will now share the paper with NFRA for additional motion.
The 2 points got here up throughout discussions of the NFRA board, with ICAI getting some leeway on unlisted massive corporations on the problem of ISA 600. On this case, updating the Indian Normal of Audit 600 (SA 600) will probably be mentioned by ICAI and implementation will probably be determined later, sources accustomed to the deliberations informed TOI.
NFRA, together with RBI and Sebi, have backed a revamp of SA 600, which was carried out in 2002 however has not aligned with ISA 600, leaving main gaps when it got here to auditing massive and listed corporations. NFRA will now concern an publicity draft, which is able to apply to listed non-public corporations to start with.
Based mostly on the suggestions the board will focus on the ultimate requirements in just a few months earlier than it’s despatched to the ministry of company affairs for notification, sources informed TOI.
The hole in SA 600 and ISA 600 was observed in a number of instances of fraud the place the position of auditors and audit companies was reviewed by NFRA in current months. SA 600 is essential for the usage of the work of different auditors and the obligations of the principal auditor. It turns into essential within the case of enormous corporations, particularly NBFC and banks.
Individually, the Institute of Chartered Accountants of India (ICAI) additionally agreed to revise the Normal on High quality Administration (SQM), a mechanism for high quality administration for audits or critiques of economic statements, the place public consultations have been accomplished. ICAI will now share the paper with NFRA for additional motion.
The 2 points got here up throughout discussions of the NFRA board, with ICAI getting some leeway on unlisted massive corporations on the problem of ISA 600. On this case, updating the Indian Normal of Audit 600 (SA 600) will probably be mentioned by ICAI and implementation will probably be determined later, sources accustomed to the deliberations informed TOI.
NFRA, together with RBI and Sebi, have backed a revamp of SA 600, which was carried out in 2002 however has not aligned with ISA 600, leaving main gaps when it got here to auditing massive and listed corporations. NFRA will now concern an publicity draft, which is able to apply to listed non-public corporations to start with.
Based mostly on the suggestions the board will focus on the ultimate requirements in just a few months earlier than it’s despatched to the ministry of company affairs for notification, sources informed TOI.
The hole in SA 600 and ISA 600 was observed in a number of instances of fraud the place the position of auditors and audit companies was reviewed by NFRA in current months. SA 600 is essential for the usage of the work of different auditors and the obligations of the principal auditor. It turns into essential within the case of enormous corporations, particularly NBFC and banks.
