NFRA Launches Outreach Programme and Audit Firm Survey to Strengthen Audit Quality

The National Financial Reporting Authority (NFRA) has undertaken multiple strategic initiatives to elevate audit quality, strengthen compliance, and support audit professionals across the country. These efforts reflect NFRA’s commitment to enhancing transparency, accountability, and governance within the financial reporting ecosystem.

1. Nationwide Outreach Programme

NFRA conducted a large-scale outreach programme across India to:

• Engage with auditors, audit committees, preparers, and other stakeholders
• Disseminate guidance on audit standards and regulatory expectations
• Identify practical challenges faced by audit firms, especially smaller practitioners

This initiative aims to bridge knowledge gaps and promote consistent interpretation of auditing standards.

2. Survey of 383 Audit Firms

To better understand on-ground realities, NFRA surveyed 383 audit firms across various regions and firm sizes.

The survey insights help NFRA:

• Identify bottlenecks in audit execution
• Recognise areas requiring capacity-building
• Tailor support for small and medium practitioners (SMPs)
• Strengthen the overall audit ecosystem

3. Launch of the “Auditor–Audit Committee Interactions” Series

NFRA has introduced a dedicated conversation series titled “Auditor–Audit Committee Interactions.”

This initiative aims to:

• Improve communication between auditors and audit committees
• Enhance understanding of risk areas, scope, and responsibilities
• Strengthen audit governance and oversight
• Promote high-quality, insight-driven audits

These structured interactions foster a more collaborative environment for audit excellence.

4. Release of Audit Practice Toolkits

To support SMPs and improve the quality of their audit engagements, NFRA has released Audit Practice Toolkits focused on:

• Practical audit methodologies
• Planning and documentation standards
• Execution and reporting procedures
• Compliance with professional and ethical requirements

These toolkits serve as hands-on resources offering step-by-step guidance for auditors.

5. Issue of Circulars on Legal and Standard Requirements

NFRA continues to issue circulars clarifying key regulatory and auditing standard requirements, covering:

• Legal obligations of auditors and audit firms
• Expectations under Standards on Auditing (SAs)
• Quality control and documentation requirements
• Common non-compliance areas observed during inspections

These circulars aim to improve consistency, reduce errors, and reinforce compliance culture.

6. Understanding NFRA’s Audit-Quality Initiatives in Detail

Together, these initiatives reflect NFRA’s multi-pronged approach to strengthening audit quality in India through capacity-building, regulatory clarity, practitioner support, and accountability mechanisms.

For a deeper understanding of NFRA’s audit quality enhancement measures, stakeholders are encouraged to refer to the detailed reports, toolkits, circulars, and interaction series published by NFRA.

Click Here To Read The Full Story