India’s National Financial Reporting Authority (NFRA) has formed an advisory committee focused on audit quality, assurance and technology.
The committee brings together representatives from stakeholder groups comprising audit professionals and committees, chief financial officers, independent directors, technology specialists, regulators and industry.
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According to the Hindu Businessline report, the panel will advise on the implementation and consistent use of auditing, quality control and quality management standards. Its remit also covers related assurance and review standards, as well as relevant ethical requirements.
The nine-member committee will also identify audit areas, industry sectors and emerging risks that could require thematic or sector-specific scrutiny.
A further part of its role will be to advise on the governance, risks and implementation considerations associated with the use of data analytics, automation, AI and machine learning in audit work.
The panel will additionally provide input on cybersecurity and cloud risks affecting audit systems, the integrity and confidentiality of audit records, and the protection of client data.
The NFRA added that this is its third advisory body.
The first, the Technical Advisory Committee, was established in 2020 and completed its term in December 2022.
In July 2024, the NFRA created an advisory group of senior experts to provide guidance on resources for auditors and audit committees.
In March this year, the organisation identified a series of “deficiencies” in the work of audit companies linked to BDO, EY, KPMG and PricewaterhouseCoopers. It flagged critical gaps in audit independence, internal governance and related-party transaction scrutiny.
