NFRA detects shortcomings in MSKA’s audit of related party transactions
National Financial Reporting Authority (NFRA) has flagged significant deficiencies in the audit practices of MSKA & Associates, an affiliate of BDO International, especially in related party transactions.
ET Year-end Special Reads
Why these three sectors look promising for investors in 2025
18 top stock picks for 2025 from 6 leading brokers
Buying a home in 2025? Here's how property market can shape up
Releasing its inspection report on Thursday, the audit regulator also underscored the “absence of formal documentation regarding the firm’s governance and management structure”. This indicates “non-compliance” with the first element of Standard on Quality Control 1, or SQC-1, that deals with leadership responsibilities for quality within an audit firm.
NFRA initiated audit quality inspections of MSKA in January 2024 and the on-site inspection was carried out between January and February last year.
The audit procedures performed in respect of related party transactions and such disclosures across all the five selected companies audited by MSKA & Associates are “found to be inadequate”, NFRA said in the report. In respect of four of these selected companies, “related party disclosures were found incomplete, inaccurate, and non-compliant with relevant accounting standards (Ind AS 24) and the Companies Act, 2013 on one or more counts”, the regulator said.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By — Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Bas
