Audit Integrity: Enhancing Corporate Accountability

Auditing quality has improved recently, says NFRA chief Ajay Bhushan Prasad Pandey, highlighting board and audit committee engagement's role in averting corporate failures. The NFRA has issued over 80 orders addressing auditing lapses to bolster corporate fiscal responsibility and safeguard against future failures.

Ajay Bhushan Prasad Pandey, the chief of the National Financial Reporting Authority (NFRA), announced improvements in company audits over the past four years, emphasizing involvement from board members and audit committees to avert corporate failures.

The NFRA, since its 2018 inception, has mandated stricter oversight on auditors, resulting in over 80 orders in cases involving giants like Cafe Coffee Day and DHFL, citing lapses that contributed to corporate collapses.

Pandey highlighted effective communication as crucial, urging those charged with governance to work closely with auditors to fulfill responsibilities, prevent repeating past failures, and protect banks and shareholders from significant losses.

(With inputs from agencies.)