Lok Sabha Question No. 1195 (UNSTARRED), answered on 2025-12-08
Subject: Outreach Programmes launched by NFRA
Ministry: CORPORATE AFFAIRS
Asked by: Smt. D K Aruna, Shri Hasmukhbhai Somabhai Patel, Shri Miteshbhai Rameshbhai Patel

## MINISTRY OF CORPORATE AFFAIRS

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO. 1195

## ANSWERED ON MONDAY, DECEMBER 08, 2025/ 17 AGRAHAYANA, 1947 (SAKA)

Outreach Programmes launched by NFRA

## QUESTION

1195. Shri Hasmukhbhai Somabhai Patel:

Shri Mitesh Patel Bakabhai:

Smt. DK Aruna:

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/outreach  programmes  launched  by  the  National Financial Reporting Authority (NFRA);
- (b) the  details  of  the  venues  and  schedule  of  these  outreach programmes along with the number of participants and stakeholders involved so far;
- (c) the details of the objectives of the 'Audit Firm Survey 2025' initiated  by  the  NFRA  along  with  public  relations  activities  to assess challenges and gather feedback from auditors; and
- (d) the steps taken by the NFRA to strengthen accounting/audit quality and professional standard across the country?

## 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  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) Outreach programmes were 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.
- (d) NFRA has taken the following main steps in keeping with its mandate.
- (i)
- Standard Setting Functions:
- (a)
- Auditing Standards

A  set  of  40  revised  high-quality  Standards  on  Auditing including revised Standard on Group Audits and Standards on Quality Management, have been recommended by NFRA.

- (b) Accounting Standards

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 CorporateaAffairs.

## (ii) Enforcement Functions:

NFRA has taken disciplinary action for professional misconduct  thereby  sensitising  the  audit  profession  regarding their responsibility in law and accounting and auditing standards. NFRA has also conducted webinars and is consistently engaging with stakeholders to disseminate its experience and findings.

## (iii) Audit Quality Inspections:

In  December 2022, NFRA initiated audit quality inspections of audit firms covering both firm-wide inspection and inspection of individual  audit  engagement  undertaken  by  the  audit  firms  in respect  of  the  audit  of  Public  Interest  Entities.  So  far  12  audit quality inspection reports have been published on NFRA website.

## (iv) NFRA Circulars:

NFRA has issued circulars, reiterating provisions in law and standards, with a view to prevent recurrence of various types of non-compliances and bring in systemic improvement in the quality of  financial  reporting  in  India,  towards  advising  and  guiding various stakeholders.

## (v) NFRA series on Auditor-Audit Committee Interactions:

A  series  of  Auditor-Audit  Committee  Interactions  has  been commenced as it has critical role in ensuring better audit quality.

- (vi) NFRA  has  collaborated  with  Indian  Institute  of  Corporate Affairs  (IICA)  and  a  4-month  course  had  been  launched  for capacity  building  of  independent  directors  and  audit  committee members  of  companies  who  have  significant  responsibilities towards audit quality in law.
- (vii) NFRA has issued 'Audit Practice Toolkits' on its website on 04  November  2025  with  a  focus  on  supporting  the  small  and medium practitioners engaged in the audits.

(viii)  Announced  launch  of  webinar  series  as  part  of  its  2025-26 initiative 'Creating a Better Financial Reporting Ecosystem'. First webinar of this series on 'Impairment of Assets -Ind AS 36' was conducted on 26.11.2025

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