Revamping Audit Communication: NFRA's Strategic Papers Initiative

NFRA is initiating the release of six to seven strategic papers aimed at improving communications between auditors and companies' audit committees. These papers will guide audit committees, independent directors, and board members in understanding auditing nuances. The initiative is part of NFRA's efforts to elevate audit quality and corporate governance standards.

In a bid to enhance audit interactions, NFRA, chaired by Ajay Bhushan Prasad Pandey, plans to release a series of strategic papers. These documents will address key aspects of statutory audits, aiming to foster better communication between auditors and companies' audit committees.

Pandey noted that these papers will serve as guidance for stakeholders, enabling them to ask pertinent questions related to audits. Since its foundation in October 2018, NFRA has been active in improving audit practices, executing over 80 orders against entities for audit failures.

The papers are a strategic move to ensure that audit committees engage effectively with auditors. This proactive measure comes after observing communication lapses, which if addressed, could strengthen audit quality and uphold corporate governance standards.

(With inputs from agencies.)