NFRA Reports Audit Lapses and Seeks Enhanced Coordination with ICAI to Improve Audit Quality

The National Financial Reporting Authority (NFRA) released audit quality inspection reports for four major audit firms, including affiliates of PwC, EY, KPMG, and BDO, highlighting areas for systemic improvements such as governance and independence protocols. Concurrently, NFRA and the Institute of Chartered Accountants of India (ICAI) are considering a formal mechanism to enhance regulatory coordination, aiming for regular interactions and joint efforts to improve audit quality and reduce regulatory conflicts. This includes ICAI pausing certain investigations following NFRA probes.