The National Financial Reporting Authority (NFRA) is planning to annually undertake inspection of major audit firms, including Big Fours to gauge their compliance with stipulated standards and processes, seeking to put in place an oversight mechanism of this kind for the first time.
The regulator’s plan comes after it released, late in December 2023, inspection reports on deficiencies in the audit processes of major firms such as BSR & Co, Deloitte Haskins & Sells, SR Batliboi & Co, Price Waterhouse Chartered Accountants LLP and Walker Chandiok & Co.
NFRA’s proactive approach to conducting annual inspections of major audit firms reflects a commitment to upholding the integrity and transparency of financial reporting, thereby reinforcing confidence in the Indian corporate ecosystem.