The ICAI and the NFRA, two audit regulators, have drawn their daggers in public, with the CA Institute rejecting the Technical Advisory Committee (TAC) report of March 2021 altogether. When it comes to the recently released NFRA consultation paper, the CA Institute and the National Financial Reporting Authority (NFRA), the new audit regulator for listed and large firms, are at odds. Naming certain shortcomings, the TAC pointed out that the recent audits involving IL&FS entities, DHFL, Reliance Capital, GVK Power and Yes Bank, reflects that the auditing profession is facing a crisis of confidence.

National Financial Reporting Authority (NFRA) was established by the Central Government in October 2018 with the fundamental objective of driving systemic change in the Indian Financial Reporting System for Public Interest Entities (PIEs)s. NFRA has identified engagement with various categories of stakeholders as central in its strategy to deliver on its public interest mandate. Accordingly, NFRA had asked its Technical Advisory Committee (TAC) to examine the issues involved and recommend steps to be taken. The TAC submitted its report at the end of March 2021.