The National Financial Reporting Authority (NFRA) has extended the last date for receiving comments on Annual Transparency Report upto 24.02.2023.
Auditors have a critical role in the financial reporting supply chain of PIEs. Audit of financial reports of PIEs by Independent Auditor enhances the credibility and integrity of the general purpose financial reports of PIEs. Therefore, the need for high-quality comprehensive financial information covering both financial and non-financial aspects of PIEs cannot be over-emphasised.
Regulators have been prescribing obligations for PIEs to provide high-quality comprehensive financial and non-financial information commensurate with the nature, size and complexity of their operations to the various stakeholders. The role and responsibilities of the independent auditors of such entities have also evolved significantly with focus on the need to build commensurate professional and operating capabilities within the auditing profession. Audit professionals have been augmenting their capabilities and resources including building a network or alliances of firms, domestically and globally, developing in-house multi-disciplinary professionals or professional units, delivering variety of non-audit services, increasing use of digital audit tools and techniques, separating management and governance structures and so on.
In this backdrop, Regulators and Oversight Authorities in some overseas jurisdictions1 require audit firms carrying out audit of PIEs to prepare and publish information in the form of Transparency Reports on annual basis. Accordingly, the audit firms in those jurisdictions have been publishing the Transparency Reports2
Indian companies have become significant constituents of the global economy and India has evolved as global centre of excellence in the delivery of financial reporting and audit services to a large number of multi-national corporations raising expectations for sound and high-quality codes and practices comparable to global benchmarks.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
