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NFRA proposes to revisit compulsory statutory audit | Economic Times

The National Financial Reporting Authority (NFRA) is proposing to revisit compulsory statutory audit. The audit regulator has floated a paper seeking public and stakeholder comments on whether MSMCs should be out of the ambit of mandatory statutory audit currently stipulated under the company law for all companies.Major economies of the world require statutory audit for small companies only in case some minimum criteria of public interest are satisfied, it said, adding that even in India, income tax audit was now not compulsory where the turnover is ₹10 crore or less, provided not more than 5% of the transactions were in cash. Goods and services tax audit had also been completely done away with."It is, therefore, appropriate to revisit the requirement of compulsory statutory audit for all companies irrespective of their size and/or public interest," an official statement said.The NFRA has prepared a consultation paper explaining the issues involved, it added.

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