The five major auditing companies in India express concerns about the operational methods of the National Financial Authority (NFRA), which indicates that they may be in violation of the Corporate Law of 2013, Financial Express.
This comes at a time when the NFRA Supreme Court hears the NFRA against the Delhi Supreme Court’s decision that he canceled 11 show notifications issued by the audit regulator in April 2025.
In February 2025, the Supreme Court of Delhi supported the NFRA authority to investigate and punish misconduct among legal accountants (CA).
The seat, which includes the Judges of Yashwant Varma and Dharmesh Sharma, rejected petitions from accountants and individual companies, including Deloitte Haskins and Sells, and concluded that their objections lack merit.
After the Supreme Court decision, NFRA She announced a reassessment of its strategy.
The auditors now highlight the problem of Section 132 and the NFRA rules of the corporate law, which they explain as indicating the separation of investigation powers and disciplinary procedures.
They argue that the current role of the NFRA executive body in both functions presents neutrality and objective evaluation, a source of concern that the Supreme Court in Delhi has noticed in its last matter.
It is said that this perception of neutrality by NFRA affects the ability to scrutinize and keep talents.
CAS is said to choose less dangerous professional paths on audit roles due to the strict organizational environment.
Speaking, a auditor of the four adults company, speaking on condition of anonymity, told Financial Express: “Organizers such as NFRA must maintain a good balance, and ensure that if the auditors are responsible for lapses, their orders should also be seen as not biased and compatible with the laws,” a auditor of the Big Four Company, speaking on the condition that his identity does not disclose, told Financial Express.
In December 2024, Fraval and PPROSAD NFRA will continue Related improvements in audit standards.
“The five major audit companies express concerns about the work of NFRA” that were originally created and published International Accounting BulletinThe brand owned by Globaldata.
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