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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)
KRISHAN GOPAL MAHESHWARI
Krishan Gopal Maheshwari 3 years 7 months ago

Define MSME as non-subsidiary, independent firms if it is not more than 25% owned or controlled by another enterprise or jointly enterprises which aren’t themselves MSME, then only allow statutory audit exemption. Promote voluntary audit by MBA (no CA) with reasonable fees. Allow banks to grant loan to audit exempt MSME if have good credit score on unaudited figures. Suggest if firm want to discontinue statutory audit,they should have accounting &audit knowledge to prepare financial statements.

KRISHAN GOPAL MAHESHWARI
Krishan Gopal Maheshwari 3 years 7 months ago

Audit limits frauds/illegal acts. Conducting audit can be regarded as CSR(corporate social responsibility) as CSR is a way of responding positively to emerging priorities & expectations of society. Declare NGO as Not MSME.Define Micro Enterprise as

waghulde.jayesh@gmail.com
jayesh waghulde 3 years 7 months ago

Sir the Indian Trust Law and Bombay Public Trust Law are Summarily misused for financing in almost all types of corporates and it's been done since 1830s. The Corporates who save Tax through these Laws should be held that saving Tax Means that whatever money was scrutinised belonged to Needy and Poor. Saving Tax Necessarily Meant Enriching Poorest and Remotest and ways and means to work for Needy. I feel ROC of all the states should look in to these matters.

vipinkumar_745
vipin Kumar 3 years 7 months ago

सेवा में,
माननीय प्रधानमंत्री महोदय जी
भारत सरकार दिल्ली
वादिनी-मीरा देवी पत्नी शिवकरन सिंह निवासी मुनागंज थाना अछल्दा जिला औरैया उत्तरप्रदेश मो 7055674254
प्रतिवादी-क्षत्रपाल पुत्र प्रेमचंद, उमेश उर्फ़ बासू पुत्र पूरनसिंह, तनुज पुत्र लाल सिंह, देशराज उर्फ़ पटेरिया पुत्र विजय सिंह व10लोग अज्ञात
प्रार्थना पत्र सन्दर्भ-थाना अछल्दा जिला औरैया में दर्ज मु.अ.स.0137/2018के सन्दर्भ में-
महोदय जी, निवेदन है कि प्रार्थीनी बेहद परेशान व पीड़ित हैं, प्रर्थीनी वप्रार्थीनी

Deepali Hingne
Deepali Hingne adv 3 years 7 months ago

make a app/portal in comman
in 1st stage 4 all kind of digital paper work submit all data of companies
& thay portal attach with finance
that will categories in amount proportion by year wise
it will help 2maintan data with safety
even cn do in different of department
that will give records 1confidential department
even in tax- 2prevent bribe
after regular completion of record appreciates it
those who r true/needs appreciation
then that increase its credibility
dif dept in dif head