NFRA Releases Audit Inspection Reports and Seeks Coordination with ICAI

The National Financial Reporting Authority (NFRA) released four audit quality inspection reports for 2023-24 covering Price Waterhouse affiliates, SRBC Co, MSKA Associates, and BSR affiliates. The reports identified shortcomings including inadequate arm's length loan assessments, documentation gaps, and governance weaknesses. NFRA recommended stronger internal controls, improved independence protocols, and formal whistleblower mechanisms. Concurrently, NFRA and the Institute of Chartered Accountants of India (ICAI) are exploring a formal mechanism to enhance regulatory coordination and audit quality oversight in India.