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)
Submission Closed

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.

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Showing 363 Submission(s)
250700
SUTHAHAR P 7 months 3 days 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.

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Murali Kumar 7 months 3 days 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

49680
Vipin Chandra 7 months 3 days ago

Most of the auditors are the advisors to the entrepreneurs on how to escape from tax. Therefore, there should be rigid rules to control the auditors and violators should be disqualified. In my opinion m0re than 50% of the tax payers are excepted from paying tax by auditors. The sale value of 10 crore is also weakening the exchequer. This benefit should be accounted based on the employment the establishment is making. A total refurbishment is the need of the hour to put up India on first.

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Pratik kumar 7 months 3 days ago

To restrict black money audit is must.
And this can only be ensured by active participation of MSMEs , stakeholders and business men.

79570
Deepa Bisht 7 months 3 days ago

The project team is made up of those people dedicated to the project or borrowed on a part-time basis. As project manager, you need to provide leadership, direction, and above all, the support to team members as they go about accomplishing their tasks. Working closely with the team to solve problems can help you learn from the team and build rapport. Showing your support for the project team and for each member will help you get their support and cooperation.

79570
Deepa Bisht 7 months 3 days ago

Some suggestions in dealing with top management are:

Develop in-depth plans and major milestones that must be approved by top management during the planning and design phases of the project.
Ask top management associated with your project for their information reporting needs and frequency.Develop a status reporting methodology to be distributed on a scheduled basis.
Keep them informed of project risks and potential impacts at all times.The project team is made up of those people dedicated

79570
Deepa Bisht 7 months 3 days ago

On the minus side, failure can be quite dramatic and visible to all, and if the project is large and expensive (most are), the cost of failure will be more substantial than for a smaller, less visible project.

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Deepa Bisht 7 months 3 days ago

Project Stakeholders
Top Management
Top management may include the president of the company, vice-presidents, directors, division managers, the corporate operating committee, and others. These people direct the strategy and development of the organization.

On the plus side, you are likely to have top management support, which means it will be easier to recruit the best staff to carry out the project, and acquire needed material and resources; also visibility can enhance a project manager’s

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T Shekar babu 7 months 3 days ago

Observed, that generation of bill e-way, during goods delivery & the cancellation after delivery of the goods, has become a practice as a loophole in the tax evasion.
Once the bill generated & cancelled should be PENALISED, The time given for cancellation should be reduced & the reason given should be supported with a correct reason.

316930
V Navin Mitiran 7 months 3 days ago

Municipal Bond
A bond issued by a local or state government. Municipal bonds are usually used to raise capital for improvements in infrastructure or other aspects of the municipality. For example, a city or school district may issue a bond to build a new school or a new playground. Municipal bonds are exempt from income taxes and sometimes from state local taxes as well. Municipals usually pay lower coupons than corporate bonds, but because the yield is tax-free.