ICAI to Discuss NFRA's Proposed Changes to Auditing Standards on Sep 17

The Institute of Chartered Accountants of India (ICAI) Central Council will debate the National Financial Reporting Authority's (NFRA) proposed changes to auditing standard SA 600 on September 17. Concerns revolve around the alignment with international standards and potential impact on small and medium auditing firms' workload.

The Institute of Chartered Accountants of India (ICAI) Central Council is set to deliberate on the proposed changes to auditing standard SA 600 by the National Financial Reporting Authority (NFRA) on September 17. The meeting comes amid mounting concerns regarding the suggested updates.

Standard on Auditing (SA) 600 is crucial for situations where a principal auditor relies on the audit work of another auditor for a group entity. NFRA aims to align SA 600 with international standards, but ICAI warns that such a move could concentrate audit activities within a few firms, sidelining small and medium auditing firms.

Currently, principal auditors are required to provide a primary audit report and a consolidated statement of the audit work done by other auditors. The proposed changes would make principal auditors responsible for the audits of group entities' auditors, leading to fears that smaller firms might be left out of significant auditing opportunities.

(With inputs from agencies.)