NFRA Board revises all audit standards despite ICAI dissent on some likely effective from FY26
Subscribe to enjoy similar stories. New Delhi: The board of the National Financial Reporting Authority (NFRA) on Tuesday approved a revision of all audit standards issued by the Institute of Chartered Accountants of India (ICAI) in spite of objections from the accountants' body on some of the changes.
NFRA recommended the implementation of the revisions to the government from 1 April 2026, the ministry of corporate affairs said in a statement, marking a major shift in the norms governing statutory audit of companies. NFRA, formed in 2018, has taken the lead in revising the audit standards and getting them notified as government rules—an overdue requirement that was written into the law in 2013.
The new Companies Act of 2013 that replaced the 1956 law mandated changes to the statutory audit regime following the Satyam Computers scandal of 2009. The ministry said NFRA has referred to the government the revised 38 audit standards, including those dealing with audits of consolidated financial statements of business groups, joint audits and financial statements prepared under special purpose frameworks, as well as two quality control standards.
These are to be notified under the Companies Act. Mint reported on Monday that NFRA had kicked off an epic overhaul of the way auditors verify the truthfulness of corporate financial information, in a change of regime from the current system where auditing standards issued by ICAI are deemed to be final.
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