NFRA Highlights Audit Shortcomings in Top Indian Firms

The National Financial Reporting Authority (NFRA) has flagged several shortcomings in the inspection reports concerning the auditing work of six prominent audit firms and their affiliates. The firms include Deloitte Haskins & Sells and Walker Chandiok & Co LLP, among others.

Key issues identified include insufficient safeguards against prohibited Non-Audit Services and systemic improvements needed for independence declarations by Walker Chandiok & Co LLP. The NFRA's evaluation underscores a lack of formal communication of deficiencies during Internal Quality Control Reviews.

Additionally, the report calls for enhanced monitoring mechanisms, stronger documentation processes, and improved compliance with Standard Quality Control among others for firms like Umamaheswara Rao & Co, B D G & CO LLP, Singhi & Co, and CNK & Associates LLP. These audits were initiated in 2025.