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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)
SunilKumar_584
Sunil Kumar 3 years 7 months ago

I want to conect 

e-sharam yojana new project with at the name- Ayushman bharat job yojana for ALL (CHO-husbands)

Sir u r director of that yojana.

Many CHO husband r jobless in corona session, but operate computer , mobile application.i think it easy to fill that portal,given job for me/him.

Do something new creatively sir,

mygov_163805263679585721
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Bhaskaran Vazhuthanayil 3 years 7 months 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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ARUN KUMAR GUPTA 3 years 7 months ago

First government should justify their act.
Those who comply with laws of the land are caught for mistakes and shortcomings.
Those who don't comply are never asked to comply with the laws of land and let to enjoy the life.
Instead of making efforts to bring more persons and organisations under tax net, government tries to squeeze those only who are paying tax diligently out of their hard earned money

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MD. HAMID ULLAH
MD. HAMID ULLAH 3 years 7 months 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.

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MD. HAMID ULLAH
MD. HAMID ULLAH 3 years 7 months ago

The due date to file NFRA-2 eForm (Annual Return for Auditors under the Companies Act, 2013) by the statutory auditors on the MCA portal has been extended for FY 2018-19. The new due date shall be 210 days from the date on which the eForm is made available on the MCA portal, i.e 6th July 2020.

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kunal kishore_11
kunal kishore 3 years 7 months ago

Online audit is a demand of time.audit has to be in different level and different concept. Spiritual audit is necessary for proper and accurate results.

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ABHAY KUMAR_243
ABHAY 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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