Audit Watchdog National Financial Reporting Authority (NFRA) emphasized the specific aspects of practice that the auditors of SRBC & Co. LLP, Walker Chandiok & Co. LLP and Deloitte Haskins and sell LLP, which must improve in a number of reports prepared after the company visiting and control specific audits performed by them.
NFRA inspection reports are not disciplinary in nature, but offer audit companies the opportunity to improve their systems and procedures.
The NFRA reported on Friday that Walker Chandioook & Co., which the regulatory authority had previously reported as part of the Thornton International LTD grant, must comply with the independence requirements of the Auditor’s independent in Section 144 of the Company Act.
Watchdog said Walker Chandiok & Co. In his communication with the NFRA, however, he claimed that he was not a member of the GTIL network. The audit company did not re -register a problem regarding the documentation of the independence and audit of the auditor recorded in the previous report on the inspection, NFRA said.
In response to a question from Mint, spokesman Walker Chandiok & Co. He said that the company is determined to observe the highest standards of financial reporting.
Liability and integrity
“We believe in responsibility and integrity towards our participating parties and we are determined to strengthen the quality of the audit for the protection of public interest and continue to fulfill our professional duties in economic growth and the development of the country,” the spokesman said.
The spokesman said the current inspection focused primarily on remedying observations in the 2022 Inspection Report, which was published in December 2023, but also concerned audits for orders carried out before the report.
“We have constantly adhered to the highest standards of audit quality and have shown our obligation to independence of the auditor by the first to impose a self -regulation embargo for providing the permissible unacceptable services for audit clients, including their possession and subsidiaries in July 2019.
“Now we have decided to expand this embargo to all Covered NFRA audit clients instead of audit clients,” the spokesman said.
The statement states that from the previous report an audit firm has significantly invested in technology and improved its policies, which it believes that there will be a long way to improve the quality of the audit.
The regulator claimed that SRBC was a member of two networks: Ernst & Young Global Network and SR Batliboi & Affiliates (Indian Network/SRB Network). The NFRA claimed that its previous 2023 inspection report noted that the independence policies did not recognize the relationship between the EY network and the SRB network, resulting in failure to comply with two sections of the 2013 Society Act.
Independence policy
The NFRA said that the audit company reported the regulatory body about its proposal to change its policy of independence in response to the report on the inspection of the regulatory body. However, due to considerable delay in obtaining complete information, the regulatory body could not verify whether the company is in full compliance with the independence requirements specified in the Company Act, the regulatory body said. The NFRA created the first impression that the company should implement a robust process that would deal with all threats of independence.
In response to the question from the Mint, SRBC said: “We are determined to provide sustainable, permanently high -quality audits in accordance with valid audit standards and independence requirements. We consider NFRA recommendations constructive in supporting the audit quality.”
In the case of Deloitte Haskins and Sells NFRA, the audit company said it accepted a revised network agreement and improvised the procedure to ensure the independence of the staff. NFRA said it acknowledges that the audit company voluntarily adopted instructions on non -providing non -valura service is the first step. Nevertheless, the NFRA expects full compliance with section 144 of the Company Act.
“We believe that the NFRA inspection process is an important role in achieving our shared goals improving the quality of audit and providing investors and public interest. We have always committed to strengthening the quality of the audit and not affecting this objective,” Deloitte said in his communication with the NFRA.
Deloitte Haskins on Friday and sells the search for comments on the story remained unanswered at the time of publishing.
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Business Newsnewsindiianfra emphasizes weakness of audit firms, areas requiring improvementMoreLess (Tagstotranslate) NFRA (T) Audit Firms (T) Audit Inspection (T) Auditor Independence (T) SRBC & Co. LLP
