Lok Sabha Question No. 230 (UNSTARRED), answered on 2025-12-01
Subject: Audit Firm Survey 2025
Ministry: CORPORATE AFFAIRS
Asked by: Shri Bunty Vivek Sahu, Shri Shivmangal Singh Tomar, Shri P P Chaudhary, Shri Shashank Mani, Shri Chandan Chauhan

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 230

ANSWERED ONMONDAY, DECEMBER 01, 2025/ 10 AGRAHAYANA, 1947 (SAKA) Audit Firm Survey 2025

## QUESTION

230. Shri Shivmangal Singh Tomar:

Shri Chandan Chauhan:

Shri Shashank Mani:

Shri P P Chaudhary:

Shri Bunty Vivek Sahu:

## Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the  details  of  the  objectives  and  key  themes  of  the  series  of  Public Relations Programs launched by the National Financial Accounting Authority (NFRA);
- (b) the  details  of  the  venues  and  schedule  of  these  Public  Relations Programs, along with the number of participants and stakeholders involved so far;
- (c) the  objectives  of  the  'Audit  Firm  Survey  2025'  launched  by  the  NFRA along  with  public  relations  activities  to  know  about  the  challenges  and  get feedback from auditors;
- (d) the  details  of  the  steps  taken  by  the  NFRA  to  strengthen  accounting quality and professional standards across the country;
- (e) whether  the  business  and  industrial  stakeholders  in  Madhya  Pradesh particularly  in  the  Chhindwara regions have also been benefited from these intiatives;  and
- (f) if so, the details thereof?

## ANSWER

MINISTER  OF  STATE  IN  THE  MINISTRY  OF  CORPORATE  AFFAIRS  AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS.

(SHRI HARSH MALHOTRA)

- (a) The  initiative  of  National  Financial  Reporting  Authority  (NFRA) through outreach programmes across the country is aimed at enhancing audit  quality  and  promoting  sustainable  audit  practices  for  all  sizes  of audit firms and especially the small & medium sized audit firms. The series of  outreach  programme  is  titled  'Creating  a  Better  Financial  Reporting World' and are being organized at various locations across the country.
- (b) Public Relations Programswere held as detailed below:
- (i) At Hyderabad on 26.09.2025. It was attended by 65 practitioners, including representatives from 27 audit firms.
- (ii) At  Indore  on  06.10.2025.  It  was  attended  by  42  practitioners, including representatives from 13 audit firms.
- (c) NFRA initiated  its  firstever  'Audit  Firms  Survey  2025'  alongside  the outreach activities aimed at addressing issues related to audit quality, and towards  its  role  of  supporting  all  audit  practitioners  effectively.  The insights gathered will enable NFRA  to further tailor its roles and responsibilities and enable constructive dialogue with all audit firms and audit  practitioners.  A  total  of  383  firms  across  India  participated  in  the survey.
- (d)NFRA has taken the following main steps in keeping with its mandate:-
- (i) 21 meetings of the Authority have been held. Record notes of all Authority  Meetings  are  placed  on  NFRA  website  as  a  measure  of transparency and for awareness of stakeholders on critical aspects of standard setting.
- (ii) A total of 47 amendments/changes to Ind AS (Indian Accounting Standards) have been recommended of which 44 have been notified. A set of 27 Accounting Standards for small and medium companies have been  recommended  which  have  been  notified  by  the  Ministry  of Corporate Affairs.

(iii) A set of 40 revised high-quality Standards on Auditing including revised Standard on Group Audits and Standards on Quality Management, have been suggested by NFRA. (iii) NFRA has taken disciplinary action for professional misconduct thereby sensitizing the audit profession regarding their responsibility in  law  and  accounting  and  auditing  standards.Learnings  from  NFRA orders  has  been  published  by  the  profession  itself.  NFRA  has  also conducted webinars and is consistently engaging with stakeholders to disseminate its experience and findings (iv) NFRA  has  issued  circulars,  reiterating  provisions  in  law  and standards, with a view to prevent recurrence of various types of noncompliances  and  bring  in  systemic  improvement  in  the  quality  of financial  reporting  in  India,  aimed  towards  advising  and  guiding various stakeholders. organized a one-day stakeholder Public Relations or

(e) & (f)  NFRA outreach programme and workshop in Indore on 06.10.2025. The Indore programme  focused  on  strengthening  audit  quality  among  Small  and Medium  Audit  Practitioners  (SMPs)  and  brought  together  professionals from across Madhya Pradesh and the adjacent regions to deliberate on key aspects of audit practice in India's evolving regulatory landscape. It was attended by 42 practitioners, including representatives from 13 audit firms.  Registration  for  the  workshops  was  voluntary  and  registration details do not capture geographical attributes.

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