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The National Financial Reporting Authority (NFRA) has called a meeting of its board members on November 25 to discuss the audit standards for limited liability partnerships (LLPs), according to official sources.
The meeting will be attended by representatives of the Institute of Chartered Accountants of India (ICAI), which had earlier drafted a Guidance Note on financial statements of LLPs.
With the growing use of LLPs in various sectors, NFRA is considering stricter audit and financial reporting standards for LLPs to enhance transparency, accountability, and investor protection.Traditionally, LLPs in India have not been subject to the same level of audit scrutiny as companies, given that they operate under the LLP Act, 2008, which has lighter compliance requirements.
NFRA may propose thresholds based on turnover or capital contribution, making audits mandatory for LLPs meeting these criteria. This could affect larger LLPs that play a substantial role in the economy.
This meeting would follow the two-day board meeting being held on Monday and Tuesday to get the views of the members on its proposed revisions to the Standards on Auditing 600 (SA 600) to match the international standards (ISA)
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