Revamping India's Corporate Governance: Aligning Audits with Global Standards

Ajay Bhushan Prasad Pandey, Chairperson of the National Financial Reporting Authority, emphasized the importance of aligning Indian auditing with global standards to boost investor confidence. He identified key players in corporate governance and highlighted reforms needed to prevent corporate failures and foster economic growth.

Ajay Bhushan Prasad Pandey, Chairperson of the National Financial Reporting Authority, emphasized the need for India to improve corporate governance and align its auditing standards with international norms to attract global investors.

Pandey pointed out that company management, independent directors, audit committees, statutory auditors, shareholders, and regulators collectively act as the safeguards for corporate governance. He stressed the importance of building trust through adherence to global auditing practices.

He noted that adopting international audit standards would not only enhance investor confidence but would also help India's economy advance from its current rank as the fifth-largest to the third-largest. Pandey advocated for reforms, particularly in audit standards like SA 600 and others, to reduce the risk of fraud and ensure early detection. He was confident that Indian accountants and Chartered Accountants could thrive globally with these standards.

(With inputs from agencies.)