Inviting Suggestions on the Consultation Paper on Statutory Audit and Auditing Standards for Micro, Small and Medium Companies (MSMCs)

Inviting Suggestions on the Consultation Paper on Statutory Audit and Auditing Standards for Micro, Small and Medium Companies (MSMCs)
Start Date :
Nov 12, 2021
Last Date :
Nov 30, 2021
23:45 PM IST (GMT +5.30 Hrs)
Submission Closed

National Financial Reporting Authority (NFRA) was established by the Central Government in October 2018 under Section 132(1) of the Companies Act, 2013. An important function of ...

National Financial Reporting Authority (NFRA) was established by the Central Government in October 2018 under Section 132(1) of the Companies Act, 2013. An important function of NFRA under Section 132(2)(a) of the Companies Act, 2013 is to make recommendation to Central Government on the formulation and laying down of accounting and auditing policies and standards for adoption by companies or class of companies or their auditors.

In view of the significant role played by companies in India in the economic growth and development of the Nation, it is essential that the regulatory environment is conducive to support, and not burden, the growth in business and economic activities of these entities. A preliminary analysis has been done by NFRA on the key financial parameters of the companies registered in India from their MCA-21 filings and it is found that the fees paid to auditors by a large majority of Micro, Small and Medium Companies (MSMCs) are way below what an audit, when performed in compliance with the letter and spirit of the Standards of Auditing, would require.

Major economies of the world require statutory audit for small companies only in case some minimum criteria of public interest are satisfied. Even in India, income tax audit is now not compulsory where the turnover is Rs. 10 crore or less provided not more than 5% of the transactions are in cash. GST audit has also been completely done away with.

NFRA has prepared a Consultation Paper explaining the issues involved and providing the data and information required for responding to the questions raised in an informed manner, with the objective to seek the comments/suggestions of the wider stakeholder group and the public at large on questions raised.

Click here to read the Consultation paper issued by NFRA.

Please submit your comments below latest by 30th November, 2021.

The comments may also be sent by email at: comments-tac.paper@nfra.gov.in.

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Showing 363 Submission(s)
21600
SUMIN BHAVSAR 1 week 21 hours ago

Audit should be done without any planning. Random audit gives actual result for all MSMEs. Random audit leads good development of all MSMEs.

36880
Gangadhar Rachakonda 1 week 22 hours ago

Mygovt has provided various facilities for economic growth and development of the nation,with view of above objects several taxation benefits are provided for MSMCs/MSME companies.
In My Opinion,to get these benefits statutory/internal audit is very essential to get their financial position.

66350
MAYURI KISHOR PANCHAKSHARI 1 week 1 day ago

Internal audit is the need of management but it is not legal obligation but statutory audit is the legal requirement. ... Internal audit is related to the examination of books of accounts and other activities of an organization but statutory audit checks the books of accounts and related evidential documents

23520
Murali Kumar 1 week 1 day ago

Modiji, In India Company Audit by Private Chartered Accountants shall not be the last word of Company Auditing Govt.of India should begin Chartered Accountant Course only to Indian Patriot Students who have qualified patriotic test&interview to Audit all Companies in India for the benifit of Nation Welfare&should never allow unaccountable money with Company owner.Govt.of India should begin Company Enforcement &Detective Agency to surprisely inspect AtoZ of registered & unregistered Companies