CA Sansaar
CIC Urges NFRA to Make Audit-Related Directions Public
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India’s Central Information Commission (CIC) has suggested that the National Financial Reporting Authority (NFRA) should make its important orders, circulars, policy decisions, and directions related to audit practices publicly available. The observation was made while the Commission was deciding an appeal filed under the Right to Information (RTI) Act, according to a report by Press Trust of India.
The RTI appeal sought details regarding NFRA’s decision permitting auditors and audit firms to be represented by legal counsel during oral hearings.
Highlighting the need for transparency in regulatory decision-making related to auditing standards, the CIC noted that any directions, circulars, or policy decisions that influence audit practices should be made accessible to the public to strengthen trust in financial reporting and protect public interest.
The Commission also reminded NFRA of its obligations under the RTI Act, particularly the provisions that require public authorities to proactively disclose important information on their websites. As per the order, such disclosures would help ensure that citizens do not have to rely excessively on RTI applications to obtain information.
NFRA, established in 2018 under the Companies Act, 2013, functions as the statutory regulator overseeing auditors in India. The authority is responsible for ensuring compliance with accounting and auditing standards and monitoring the quality of audits to maintain reliable financial reporting.
CIC Information Commissioner P.R. Ramesh reportedly noted that NFRA plays a critical role in maintaining the credibility of financial statements, which are relied upon by investors, lenders, regulators, and the wider public.
The RTI appeal sought details regarding NFRA’s decision permitting auditors and audit firms to be represented by legal counsel during oral hearings.
Highlighting the need for transparency in regulatory decision-making related to auditing standards, the CIC noted that any directions, circulars, or policy decisions that influence audit practices should be made accessible to the public to strengthen trust in financial reporting and protect public interest.
The Commission also reminded NFRA of its obligations under the RTI Act, particularly the provisions that require public authorities to proactively disclose important information on their websites. As per the order, such disclosures would help ensure that citizens do not have to rely excessively on RTI applications to obtain information.
NFRA, established in 2018 under the Companies Act, 2013, functions as the statutory regulator overseeing auditors in India. The authority is responsible for ensuring compliance with accounting and auditing standards and monitoring the quality of audits to maintain reliable financial reporting.
CIC Information Commissioner P.R. Ramesh reportedly noted that NFRA plays a critical role in maintaining the credibility of financial statements, which are relied upon by investors, lenders, regulators, and the wider public.
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