Archive · 28 Sep 2025
NFRA to Inspect Big Four Audit Firms from October
Imagine the NFRA, like a financial police, checks how big accounting companies called the 'Big Four' do their job.
They want to see if these companies fixed any mistakes they made last time.
This year, the NFRA will pay extra attention to other services these firms provide, like consulting.
If a firm does more non-audit work than auditing work, it can cause problems.
The NFRA is checking if the firms are staying independent and not making mistakes again.
It's like making sure the accountants are doing their jobs right!
NFRA will begin annual inspections of large audit firms from October-end.
The focus is on whether firms corrected issues flagged previously.
Increased scrutiny on non-audit services to investigate possible violations.
Section 144 of the Companies Act restricts non-audit services by auditors.
Experts say some lapses persist despite corrective steps by the Big Four.
- Who
- The National Financial Reporting Authority (NFRA)
- What
- Will begin its annual inspection of large audit firms.
- When
- Starting from October-end.
- Where
- N/A
- Why
- To assess corrective actions regarding RPT disclosures, documentation and non-audit services.
- Organization
- National Financial Reporting Authority (NFRA)
- Focus
- Corrective steps by audit firms
- Start Date
- October-end
- Firms Involved
- Big Four and others
- Areas of Scrutiny
- Non-audit services, independence