Govt tells NFRA and ICAI to settle differences cordially

New Delhi, 25 Oct (KNN) The government has said that the National Financial Reporting Authority (NFRA) and Institute of Chartered Accountants of India (ICAI) must resolve their differences pertaining to statutory audit of small firms and accounting standards applicable to them through dialogue.

According to an official from Ministry of Corporate Affairs (MCA), the audit regulator and the institute both are defined clearly and distinctly, hence the two bodies must sort out things between themselves as Centre does not make any clarification on perceptions. However, if the government has to articulate anything it will be in form of Acts and rules,” added the official.

This is the first time that the government’s insight has been received on this issue. Since September the differences have been brewing between NFRA and ICAI, which followed by Nihar N. Jambusarai’s statement telling the members that NFRA  has no jurisdiction over small businesses and cannot take a call on whether they need to be audit.

The industry executives have expressed that a final decision is necessary.

Until then the small business remain uncertain with regard to statutory audit, as without government intervention any form of resolution will be difficult to arrange.