The National Financial Reporting Authority (NFRA) is a necessary institutional reform to align the Indian audit landscape with the global position and the authority should be strengthened to address challenges in relation to auditors, audit firms and networks operating in India, a government-appointed expert committee has said in its report on regulating audit firms and the networks. The report was submitted to the government on Wednesday. 

“The global trend indicates a shift from self-regulation to independent regulatory structure in the domain of audit regulation due to failure of self-regulatory model in regulating professionals,” the government said in a statement. “In light of these developments, NFRA is a necessary institutional reform, which would align the Indian audit landscape with global position.” 

In its report, the committee said Indian laws and regulations on professional services need to keep pace with changing market dynamics to facilitate a business friendly environment for corporate and professionals in the country. 

“Taking note of this requirement, the report delves into critical issues like advertising, multi-disciplinary practice firms and branding,” the statement said. #casansaar (Source - Economic Times)