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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)
Hemant parikh
Hemant parikh 4 years 7 months ago
There has to be one more column in transfering amount in bank like rtgs ,cheques ,online transaction ,digital transfer ,where in payment received and paid ,category need to be written while transfering amount only ,like admin ,professional fees ,salary ,goods purchase ,home allowances ,insurance ,vehicle ,project expense ,sales ,bill no ,furnishing ,groceries ,food ,garments etc which shall become half work done of audit while transacting only ,and same shall reflect in bank statements
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Hemant parikh
Hemant parikh 4 years 7 months ago
There are times when startups facing challenges are not able to afford auditors fees ,and at end of year auditors are overburdened by annual auditing and simultaneous customers ,i think that financial years and filing returns of each different lvl of organisations need to be categorised into 4 different category ,need to be having there cycle distributed quartely ,with annual financial year date as march ,july,nov,31 st,and such prorate return filing dates
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Krishna B Gawas
Krishna B Gawas 4 years 7 months ago
Dear Honerable Prime Minister of India Shri Narendra Modiji Please issue certificate of My Gov By signature of Honerable Prime Minister to all those who scored 1 lakh credit points and Earned Badge of CHANGE MAKER on My Gov portal. Said certificate should be useful for all purpose 🙏🙏
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Krishna B Gawas
Krishna B Gawas 4 years 7 months ago
Dear Honerable Prime Minister of India Shri Narendra Modiji Kindly increase GPF contribution tax free limit up to 3 lakhs. so that middle class Govt Servant may get some relief 🙏🙏
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Krishna B Gawas
Krishna B Gawas 4 years 7 months ago
Auditing is very important in every money matters. but it should done with honestly. some financial institution are doing their audit up to date by paying some amount to auditor. there must check on such illigal activities. there must be counter check on each audit.
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Gangadhar Rachakonda
Gangadhar Rachakonda 4 years 7 months ago
Auditing is an important role on financial sector. Every audit is like an EYE to public to verify financial position of firms/companies,etc., before going to invest their money. so taking suggestions on this topic is very good in my opinion.
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Comments (1)
KACHHAD NAVNITKUMAR BAVANJIBHAI
KACHHAD NAVNITKUMAR BAVANJIBHAI 4 years 7 months ago
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
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KACHHAD NAVNITKUMAR BAVANJIBHAI
KACHHAD NAVNITKUMAR BAVANJIBHAI 4 years 7 months ago
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.
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KACHHAD NAVNITKUMAR BAVANJIBHAI
KACHHAD NAVNITKUMAR BAVANJIBHAI 4 years 7 months ago
Instead of wasting time on cash expenses audit tax at various slab as % of turnover on total cash withdrawal , cash receipts not deposited in bank For official travel expenses - facility of USA- Pcards For mortgage loan , consider company registration number as in gulf. Reward Honest tax payers Increase auditors' liability
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