More than 1,000 statutory auditors, representing a large section of audit professionals, have not filed annual returns, according to the National Financial Reporting Authority (NFRA), India’s audit regulator.
Painting a grim picture of India’s audit landscape, NFRA disclosed the names of 1,011 auditors, including sole proprietorship firms, which have not filed NFRA-2 forms for the 2018-19 reporting period.
Audit firms are required to file NFRA-2 form every year, with details on their registration and permanent account number, partners, number of employees and payments. The auditor has to disclose if it quit an audit assignment of a firm in the previous three years, or withdrew an audit report on financial statements, or its consent on using its name in a report. The auditor is also required to make a statement on its quality control policies for the reporting period.