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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)
SANJAYKUMARBUNKER
SANJAYKUMARBUNKER 3 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 ...

Dr.Manmohan Bandaru
Dr.Manmohan Bandaru 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.

MAGNELOVIJAYAN
M AGNELO VIJAYAN 3 years 7 months ago

respected sir, my idea is Audit is a must, but it should not be like regualr one, it want to be true and correct, all wnt to pay their taxes ,with out fail GST also and want to correct through Audit, make Audit work as a easy method, reduce paper work, GST filling also want to reduce the difficulties at the time of filling, then all will do Audit.

Pratik kumar_153
Pratik kumar 3 years 7 months ago

Audit is must as it ensures growth and development of any country. Mostly it is seen that people run thier business but they don't have their GST no and all.
So it leads to increment in illegal money .

VivekKumarsahu_10
Vivek Kumar sahu 3 years 7 months ago

Dear sir/ Madam,

Environment auditing should be must for all small enterprises as they go unseen for spreading pollution.

Vinayak Shankarrao Khare
VINAYAK SHANKARRAO KHARE 3 years 7 months ago

R/Sir,
1) In energy intensive industry like Steel re-roling mills, there is substantial scope specially in small/medium sector to improve energy requirement per unit of steel. This aspect may be taken into consideration for developing format for sector specific reports.
2) Pollution control is a serious issue in sugar industry due to fermentation and discharge of untreated effluent from sugar mills. Similar specific table or format must be incorporated in Annual report of Sugar mills.

muralikumar_8
Murali Kumar 3 years 7 months ago

Modiji, The audit is based on only documents what is prepared by the Company's chief accountant placed before auditor as only a routine practice.No Government auditing is there to find the profit of the company& the actual process of company in peak&non peak day of manufacture& business transaction. Every final product manufacturing unit machine process should fixed with Govt GST& ITDept.Biometric system& digitally entered the product serial&batch number&date when product rolls out of machine

Pawan Trivedi_2
Pawan Trivedi 3 years 7 months ago

इस धरती पर बहुत प्रकार के धर्म है और बहुत प्रकार के अधर्म है,
धर्म का मतलब सही और अधर्म का मतलब गलत, होता है,