Inviting Suggestions on the Consultation Paper on Statutory Audit and Auditing Standards for Micro, Small and Medium Companies (MSMCs)

Inviting Suggestions on the Consultation Paper on Statutory Audit and Auditing Standards for Micro, Small and Medium Companies (MSMCs)
Start Date :
Nov 12, 2021
Last Date :
Nov 30, 2021
23:45 PM IST (GMT +5.30 Hrs)

National Financial Reporting Authority (NFRA) was established by the Central Government in October 2018 under Section 132(1) of the Companies Act, 2013. An important function of ...

National Financial Reporting Authority (NFRA) was established by the Central Government in October 2018 under Section 132(1) of the Companies Act, 2013. An important function of NFRA under Section 132(2)(a) of the Companies Act, 2013 is to make recommendation to Central Government on the formulation and laying down of accounting and auditing policies and standards for adoption by companies or class of companies or their auditors.

In view of the significant role played by companies in India in the economic growth and development of the Nation, it is essential that the regulatory environment is conducive to support, and not burden, the growth in business and economic activities of these entities. A preliminary analysis has been done by NFRA on the key financial parameters of the companies registered in India from their MCA-21 filings and it is found that the fees paid to auditors by a large majority of Micro, Small and Medium Companies (MSMCs) are way below what an audit, when performed in compliance with the letter and spirit of the Standards of Auditing, would require.

Major economies of the world require statutory audit for small companies only in case some minimum criteria of public interest are satisfied. Even in India, income tax audit is now not compulsory where the turnover is Rs. 10 crore or less provided not more than 5% of the transactions are in cash. GST audit has also been completely done away with.

NFRA has prepared a Consultation Paper explaining the issues involved and providing the data and information required for responding to the questions raised in an informed manner, with the objective to seek the comments/suggestions of the wider stakeholder group and the public at large on questions raised.

Click here to read the Consultation paper issued by NFRA.

Please submit your comments below latest by 30th November, 2021.

The comments may also be sent by email at: comments-tac.paper@nfra.gov.in.

Reset
Showing 351 Submission(s)
120260
ABHAY KUMAR 4 hours 25 minutes ago

When MyGov app staff work so carelessly what can we expect from the government. I keep writing on this app and am now categorized as Change maker5. I received a call first from a lady Vishakha +91 83830 37281 to confirm my seminar participation on 4-12-2021 at India habitat centre, New Delhi, then I got call from Mr.Verma +91 97178 07072 to confirm and then they gave me number of Mr.Abhinav +91 99719 72101 who later told me that my name is dropped. God save our country

70250
Narender Kumar 5 hours 37 minutes ago

हर प्रकार की सेवा या सामान बेचने वाले को GST बिल रखना अनिवार्य बनाना चाहिए कियोंकि जब भी कोई कर्मचारी सर्कार या कम्पनी के लिए अपनी जेब से खर्च कर देता है तो उसे GST बिल लाने के लिए कहा जाता है और GST बील हर दुकानदार या सेवादाता नहीं रखता है जिससे की वो कम्पनी के लिए या सर्कार के लिए करने वाले कार्य धीरे पड़ जाते है ...और कर्मचारी भी पीछे हटने लगता है..

70250
Narender Kumar 5 hours 37 minutes ago

हर प्रकार की सेवा या सामान बेचने वाले को GST बिल रखना अनिवार्य बनाना चाहिए कियोंकि जब भी कोई कर्मचारी सर्कार या कम्पनी के लिए अपनी जेब से खर्च कर देता है तो उसे GST बिल लाने के लिए कहा जाता है और GST बील हर दुकानदार या सेवादाता नहीं रखता है जिससे की वो कम्पनी के लिए या सर्कार के लिए करने वाले कार्य धीरे पड़ जाते है ...और कर्मचारी भी पीछे हटने लगता है..

70250
Narender Kumar 5 hours 52 minutes ago

हर प्रकार की सेवा या सामान बेचने वाले को GST बिल रखना अनिवार्य बनाना चाहिए कियोंकि जब भी कोई कर्मचारी सर्कार या कम्पनी के लिए अपनी जेब से खर्च कर देता है तो उसे GST बिल लाने के लिए कहा जाता है और GST बील हर दुकानदार या सेवादाता नहीं रखता है जिससे की वो कम्पनी के लिए या सर्कार के लिए करने वाले कार्य धीरे पड़ जाते है ...और कर्मचारी भी पीछे हटने लगता है...

47270
SUTHAHAR P 9 hours 51 minutes ago

Audit is a vigilance mechanism which develops a fear psychosis in the mind of promoters for not doing anything wrong in the eye of laws. In case the Audited requirement for MSMCs gets exempted there is a lot more probability for false and bogus financials being portray before the Government of India by the promoters of such Companies.

47270
SUTHAHAR P 9 hours 52 minutes ago

when it comes to the quality of audit for micro and small businesses, we believe that there should be a minimum audit price criterion set based on the turnover/paid-up capital of the firms, so that the quality of the audit can be maintained for all types of businesses. This would not only improve the quality of the audit, but will also help the professionals who provide such services to raise their living standards.

47270
SUTHAHAR P 9 hours 53 minutes ago

An auditor is a third-party entity that provides an unbiased, truthful, and fair assessment of a company’s operations and financials. Without the oversight of an auditor, there is a high risk of imbalance in the Indian economy. This may give the promoters the flexibility to handle the finances on their own without fear of being found in violation of any law, resulting in the misuse of funds.

47270
SUTHAHAR P 9 hours 53 minutes ago

It is known fact that role of Auditor is of a ‘watchdog’ and certainly not a ‘blood hound’ and a Chartered Accountant play a pre-dominant role in nation building and their suggestions, advice, and role helps the Business entrepreneurs and its stakeholders to comply with the statutory requirement under various laws for the time being in force vigilantly and courteously.

20580
Murali Kumar 10 hours 27 minutes ago

Modiji, Private Chartered Accountants prepare Data for the company benefits shows expenditure&liabilities more than previous year showing reducing turnover figure to the Nation. Moreover to mobilise money from public through public share the bogous exaggerated figures&baseless online propoganda the Chartered Accountants give more support to the Company to show huge profits,against ethics that cheat share value&public.So I request to end useless Private Audit & insist Central Audit by Patriot CAs