NFRA finalises, recommends Auditing Standards to the Central Government
The standards by National Financial Reporting Authority are for notifying under Section 34A of LLP (Amendment) Act 2021
The Authority decides to recommend the 40 Standards on Auditing (SAs) and related Standards on Quality Management (SQMs)
The
National Financial Reporting Authority held its 19th Meeting on 25 November
2024 to finalise and recommend Auditing Standards to the Central Government for
notifying under Section 34A of LLP (Amendment) Act 2021. The Authority decided
to recommend the 40 Standards on Auditing (SAs) and related Standards on
Quality Management (SQM), which were finalised by the Authority in its18th
Meeting held on 11-12 November 2024 for audit of Companies, to be applicable to
audit of LLPs on a mutatis mutandis basis.
Out of 8 Members of NFRA attending the
meeting, 7 Members-the representatives of CAG, RBI, two independent
experts Prof Narayanswamy, Retired Professor IIM Bangalore, Professor Sanjay
Kallapur, Professor ISB, Hyderabad, two Full-Time Members of NFRA and
Chairperson of NFRA were in support of the proposal. The ICAI members
also supported the proposals (President, ICAI attended, and Chairman, ASB and
Chairman AASB conveyed views vide email) except for their reservations to SQMs,
SA 299, SA 600 and SA 800, 810, 805, as expressed by them earlier in respect of
the SAs and SQMs finalized in the last meeting and which were reiterated in
respect of the proposal under consideration for the audit of LLPs.
Upon the approval of the Central Government,
these Standards are recommended to be effective from 1.04.2026.