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)
135750
Athikala prasad rao 8 months 3 weeks ago

Most of the Auditors are concentrating and finding ways to escape from taxation. They should be genuine and they should keep it in mind that they are boosting country economy. They should think that they are helping poor and improves infrastructure.

135750
Athikala prasad rao 8 months 3 weeks ago

Small and medium industries emitting more green house gases, polluting water & climate. This should be controlled, there fore financial auditing exemption shall be considered only if they complied to other auditing requirements. industries shall be given incentives if they shown good results in other audits.

135750
Athikala prasad rao 8 months 3 weeks ago

For any firm financial auditing is must
For below 10cr financial auditing expempted which is good, but this should not misused. Financial auditing should be linked with energy auditing, resources auditing, environement auditing. Particularly small and medium scale industries are misusing/overusing all these. Therefore auditing other than financial shall be linked and more panalites shall be imposed for fraudulents.

2220
ATTIBELE NARAYANAPPA DINESH 8 months 3 weeks ago

Hi,
GST-
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.

343590
V Navin Mitiran 8 months 3 weeks ago

Hon'ble Prime Minister of India.
My Humble Thoughts With You.
1). INDIA: PAYING ADVANCE G S.T By MSMC's.
2). G.S.T Audit Quarterly.
3). INDIA Could become TAX HAVEN for Certain, under Rules and Regulations and as per LAW.
4). GREEN FUND - brought into process.
5). SINKING FUND
6). CONTINGENCY LIABILITY.
7). ANGEL INVESTORS could become act as Temporary Private Partners.

To be Contd...

343590
V Navin Mitiran 8 months 3 weeks ago

Hon'ble Prime Minister of India.
My Humble Thoughts With You.
1). INDIA: PAYING ADVANCE G S.T By MSMC's.
2). G.S.T Audit Quarterly.
3). INDIA Could become TAX HAVEN for Certain, under Rules and Regulations and as per LAW.
4). GREEN FUND - brought into process.
5). SINKING FUND
6). CONTINGENCY LIABILITY.
7). ANGEL INVESTORS could become act as Temporary Private Partners.

To be Contd....

236350
Rajiv Ranjan Kumar 8 months 3 weeks ago

1).For DEVELOPMENT of MSMC's AUDIT STANDARDS MUST INCORPORATE CERTAIN INTERNATIONAL STANDARDS.INDIA MUST REVISE QUALITY STANDARDS.
Eg),Sec 80 -IT for Public Welfare projects UTILISED for MSMC's. Certain Allocations of Projects could be Classified under Public Welfare Projects.
2).MSMC's Corporate Office could be established in their Houses which could be Exempted.
3).DEDUCTIBLE EXPENSES Next Scale of MSMC's Development.

236350
Rajiv Ranjan Kumar 8 months 3 weeks ago

Composition of the NFRA
The Companies Act requires the NFRA to have a chairperson who will be appointed by the Central Government and a maximum of 15 members. The appointment of such chairperson and members are subject to the following qualifications:
They should be having an expertise in accountancy, auditing, finance or law.

236350
Rajiv Ranjan Kumar 8 months 3 weeks 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.