India Inc must embrace global audit practices in a connected economy: NFRA chief | Mint

The National Financial Reporting Authority (NFRA) emphasizes the need for India Inc. to adopt global audit practices to align with international standards. NFRA Chairperson Ajay Bhushan Pandey highlights the importance of lead auditors being responsible for consolidated financial statements, even if subsidiaries are audited by others. This proposal aims to close regulatory gaps that allow fund diversions through subsidiaries. The NFRA’s push for global norms comes amid differences with the Institute of Chartered Accountants of India (ICAI), which calls for a pause in revising audit standards to ensure comprehensive stakeholder discussions. The NFRA’s proposal seeks to enhance accountability and prevent audit failures by making lead auditors accountable for the entire group’s financial statements. This move is part of India’s broader goal to become a global economic powerhouse by integrating with international best practices in accounting and auditing.