ICAI Requests NFRA to Pause Proposed SA 600 Changes

The Institute of Chartered Accountants of India (ICAI) has asked the National Financial Reporting Authority (NFRA) to halt proposed changes to the auditing standard SA 600 for group audits. ICAI argues that the revisions could harm small and medium Chartered Accountant (CA) firms and advocate for a more detailed review involving all stakeholders.

The Institute of Chartered Accountants of India (ICAI) has formally requested the National Financial Reporting Authority (NFRA) to pause the proposed changes to auditing standard SA 600, which relates to group audits.

According to ICAI, the revisions came as a surprise and could negatively impact small and medium Chartered Accountant (CA) firms. The apex body of CAs requires more time for a comprehensive review and discussions with all stakeholders to ensure the proposed revisions serve the public interest effectively.

NFRA proposed the changes in response to recent corporate fraud and audit deficiencies, while ICAI contends that the current standard has been effective over time and any modifications should consider the practicalities faced by smaller audit firms.

(With inputs from agencies.)