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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)
Rajiv Kumar_299
Rajiv Ranjan Kumar 3 years 7 months ago

Who ever wants to get real suggestions on this issue should first ask himself why India has got such negligible Income tax participation in individual category? What govt has done to increase the base and why it has failed so miserably in retail taxation? What’s the point of overly corrupt Income tax department which loves to harass more to people who pay more tax? All are afraid to tax Agri traders and are planning to over regulate the companies. Not a good idea

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Rajiv Kumar_299
Rajiv Ranjan Kumar 3 years 7 months ago

India is unique among the big economies of today’s world in that it has statutory auditing requirements for all companies, no matter their size or industry. This lack of discrimination between business sectors can be attributed to India’s pivotal role within its economic growth and development as well as one major reason why these entities should not face regulatory burdens but rather support from an environment conducive towards success.

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Ignesius Ernest Thambyraj
Ignesius Ernest Thambyraj 3 years 7 months ago

Given that 30 to 40% need to be paid as commission/bribe to people in power/position on public work tenders, Please add state government departments into NFRA to track accountability. I sincerely hope it can be done for the country to develop. Thanks

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DevHarshMishra
DevHarshMishra 3 years 7 months ago

To The honorable prime minister
sir
I have an idea which can control pollution not only control but can give profit from pollution to the India in very much cost effective way but for it i need a support from government. l request you to have a meeting appointment in regards to this so that I can clearly explain my idea to you .I hope you will consider me seriously and have a meeting in regards to pollution control idea.
Thankyou sir

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vnavinmitiran
V Navin Mitiran 3 years 7 months ago

Hon'ble Prime Minister of India.
My Humble Thoughts with You.
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.
to be Contd..

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vnavinmitiran
V Navin Mitiran 3 years 7 months ago

Hon'ble Prime Minister of India.
My Humble Thoughts with You.
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.
to be Contd..

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chandan Kumar Singh_24
chandan kumar singh 3 years 7 months ago

मुझे सरकार की नीति समझ नही आती ही बैंक में छोटे लोन खराब होते है तो लोक अदालत हर तीन महीने में होती है जो बिल्कुल ही प्रभाव हीन हे लोकाआदलत का प्रभाव कम तथा खर्चा समय ज्यादा लगता है आज कल डिफाल्टर लोकादलत को नहीं समझता इसके जगह सरकार को दूसरी नीति पर काम करना सरकार को पक्षहीन होते हुए बड़े लोन डिफाल्टर को भी सख्त कानून लाना चाइए न बैंक का निजीकरण करके इन्हें बचाने का सोचना । सरकार अपना बड़े डिफाल्टर के लोन के न भरने का दबाव को कम करने के लिए निजी कारण न करके विलय करना चाइए

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Dr.Manmohan Bandaru
Dr.Manmohan Bandaru 3 years 7 months ago

These five basic principles form the foundation of modern accounting practices.
The Revenue Principle. Image via Flickr by LendingMemo. ...
The Expense Principle. ...
The Matching Principle. ...
The Cost Principle. ...
The Objectivity Principle.

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chandan Kumar Singh_24
chandan kumar singh 3 years 7 months ago

मेरे विचार से बैंक का निजीकरण का निर्णय लिया है वह सरकार की छवि लोगो के बीच बहुत ज्यादा खराब कर रही, लोगो को सुविधा न असुविधा को जन्म दे रही है सरकार को सभी छोटे बैंक को विलय कर देना चाइए ताकि आम जनता तथा कर्मचारी का भी भविष्य सुरक्षित रहे सरकार को बैंको को मजबूत करने का सोचना चाइए न की इनको बेचकर अपनी जिमेदारी से भागना चाइए सरकार के नीतीकर सिर्फ जनतंत्र के विकास को छोड़कर अपने विचारहीन नीति को देश पर लाया सरकार के लिए बहुत घातक हे बैंक का विलय करना चाहिए ,सरकार को जानहित नीति बनाना हे

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KumariMadhu_6
KumariMadhu 3 years 7 months ago

Micro Finance System is two good for small karobari in the villages and in Urban Areas But Nowadays Our Banking System and The Govermental process is so Difficult then a normal person not like to reach there so That the policy ko saral Banaya jana chaiye tha Jis Tarah Loan Deney ka limit hi Usi Adhar par Saral Dar par Intrest Bhugtan ko vi Prathmikta Deni chahiye Rin Dharkion ko Aj vi is kshetra Mein Loaners ko Apney Business Mein Navachar sambandhit Skills ko Badhaney Hatu Training vi Deni c

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