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NFRA Calls for Systemic Reforms in Audit Practices of PwC, EY, BDO and KPMG Affiliates
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The National Financial Reporting Authority (NFRA) has urged leading audit firm networks, including affiliates of PwC, EY, BDO, and KPMG, to implement structural improvements following identified audit deficiencies. On March 16, the regulator issued four audit quality inspection reports, stating that the objective is to provide timely and actionable regulatory feedback within the financial reporting cycle, enabling firms to strengthen their quality control frameworks.
The reports cover Price Waterhouse & Affiliates’ Network, SRBC & Co, MSKA & Associates, and BSR Affiliates Network. These entities are respectively associated with PwC, EY, BDO, and KPMG.
NFRA has recommended enhancing independence safeguards and reinforcing internal governance mechanisms. Key suggestions include stricter validation of arm’s length transactions, particularly in loan arrangements, tighter oversight on non-audit services provided to audit clients, and the establishment of formal whistleblower mechanisms.
The assessment is based on a review of selected audit files of these firms for the financial year 2023–24, reflecting the regulator’s continued focus on improving audit quality and accountability across major professional networks.
The reports cover Price Waterhouse & Affiliates’ Network, SRBC & Co, MSKA & Associates, and BSR Affiliates Network. These entities are respectively associated with PwC, EY, BDO, and KPMG.
NFRA has recommended enhancing independence safeguards and reinforcing internal governance mechanisms. Key suggestions include stricter validation of arm’s length transactions, particularly in loan arrangements, tighter oversight on non-audit services provided to audit clients, and the establishment of formal whistleblower mechanisms.
The assessment is based on a review of selected audit files of these firms for the financial year 2023–24, reflecting the regulator’s continued focus on improving audit quality and accountability across major professional networks.
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