CIC Urges NFRA for Audit Transparency

The Central Information Commission advised the National Financial Reporting Authority to publish audit-related orders and policies to enhance public trust and accountability. This directive emerged during an RTI appeal, emphasizing transparency in audit practices to bolster confidence in financial reporting.

The Central Information Commission (CIC) has called on the National Financial Reporting Authority (NFRA) to publish its decisions and policies that impact auditing practices and standards, ensuring they are accessible to the public. This comes in response to an RTI appeal seeking documentation related to auditor representation during hearings.

Established in 2018 under the Companies Act, 2013, the NFRA plays a crucial role in regulating auditors and ensuring compliance with auditing standards, thereby safeguarding the reliability of financial statements. According to Information Commissioner P R Ramesh, transparency in audit-related decisions is essential to maintain public trust and interest.

The Commission emphasized that under the RTI Act, NFRA is obliged to publish certain information online, reducing the need for individual RTI applications. The NFRA clarified that the document in question was an internal note, not an official order, but agreed with the Commission's insistence on greater transparency.