NFRA in India stresses better collaboration between audit committees and auditors

From Yahoo Finance: 2025-06-18 12:14:00

India’s NFRA emphasizes enhanced collaboration between audit committees and auditors to strengthen corporate governance. Guidance highlights importance of interactions to understand tax savings, profitability, liabilities. Initiative targets all firms under NFRA’s jurisdiction to prevent perfunctory financial statement approvals and ensure accountability in management judgements. Audit committees urged to pose critical inquiries to statutory auditors for a comprehensive examination of financial documents. NFRA advocates for rigorous questioning of assumptions in financial statements to increase credibility and appeal to investors. Transparency and accountability in corporate governance emphasized through required declaration of accurate accounting policies and judgements in annual reports. NFRA launches ‘Auditor-Audit Committee Interactions’ series to improve audit quality and promote awareness of standards.

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