Auditing regulator plans innovation lab, sandbox.

La Excellence IAS Academy

Auditing regulator plans innovation lab, sandbox.

Current Affairs Daily Articles & Editorials

La Excellence IAS Academy | March 14, 2024 | Economy


Syllabus: GS-III; Subject: Economy, Topic: Industry and Industrial policies

Context: The National Financial Reporting Authority (NFRA) plans to set up an Innovation Lab for advanced auditing techniques.

 NFRA’s Initiatives:

  • Establishment of an Innovation Lab for advanced auditing techniques.
  • Engagement with Audit Committees and Independent Directors during inspections.
  • Embracing technology for fraud detection and identification of related party transactions (RPTs).
  • Advocacy for professional skepticism and the ‘Trust but Verify’ approach among auditors.
  • Push for global convergence in reporting and assurance standards.
National Financial Reporting Authority (NFRA):

·        Established: October 1, 2018, under the Companies Act, 2013.

ü  Role: Independent regulator overseeing auditing profession and accounting standards in India.

ü  Objective: To enhance the quality of corporate financial reporting.


1.     Recommending accounting and auditing policies and standards.

2.    Monitoring and enforcing compliance with standards.

3.    Improving the quality of service in compliance-related professions.

Composition: Chairperson and up to fifteen members, appointed by the Central Government.


4.    Authority to investigate professional misconduct.

5.    Empowered with civil court-like powers for investigations.

Source: Indian Express

Leave a Reply