Audit Quality Concerns Raised by NFRA Against Major Audit Firms

The National Financial Reporting Authority (NFRA) has identified audit quality issues in three firms—SRBC & Co LLP, Deloitte Haskins & Sells LLP, and Walker Chandiok & Co LLP. The reports highlight lapses such as ineffective audit procedures, lack of auditor independence, and inadequate documentation, urging compliance with legal standards.

The National Financial Reporting Authority (NFRA) has raised alarms over the audit quality of SRBC & Co LLP, Deloitte Haskins & Sells LLP, and Walker Chandiok & Co LLP. The concerns were published in three distinct reports that scrutinize the methods employed by these audit firms.

For SRBC & Co LLP, inspections carried out in 2024 focused on internal financial controls, related party transactions, and the impairment of non-financial assets. The NFRA emphasized the need for a robust independence process amidst concerns over the firm potentially violating laws by providing financial advisory services to audit clients.

Similar scrutiny was applied to Deloitte Haskins & Sells LLP and Walker Chandiok & Co LLP, where deficiencies in audit procedures and documentation were observed. The NFRA highlighted issues like insufficient verification of related party transactions and ineffective quality control mechanisms. The public release of these reports aims to enhance audit practices and compliance.

(With inputs from agencies.)