NFRA Has Issued an Inspection Report on an Audit Firm for Failing to Comply With Quality, Independence, and Legal Requirements

NFRA has released the inspection report for M/s SRBC & Co. LLP, following an audit quality inspection conducted in 2024. The report evaluates the firm’s adherence to auditing standards and regulations, with a particular focus on the firm’s quality control systems and its responses to prior deficiencies. It identifies significant concerns in areas such as auditor independence, leadership structure, audit documentation, and specific audit procedures related to related party transactions, internal financial controls over revenue, and impairment of non-financial assets. Although the firm made attempts to remediate some issues, the report recommends further improvements, particularly in strengthening independence policies and enhancing documentation practices, to ensure full compliance with the applicable laws and standards.

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