NFRA launches ‘Auditor-Audit Committee Interactions’ guidance series
National Financial Reporting Authority (NFRA) has initiated a series titled 'Auditor-Audit Committee Interactions', with its first part focusing on 'Expected Credit Losses' (ECL) under Ind AS 109.
This move is part of NFRA's strategy to suggest improvements in audit quality and to promote awareness of accounting and auditing standards. Ind AS 109 sets the standards for the recognition and measurement of ECL, while Ind AS 107 details the disclosure requirements.
During NFRA’s enforcement, review, and monitoring activities, the auditor's communication with those charged with governance (TCWG), including audit committees, has been emphasised. The latest initiative aims to enhance understanding of key accounting and auditing areas while supporting NFRA's goals of protecting public interest and ensuring investor protection. The first instalment of the series highlights potential questions that audit committees and boards of directors may raise with auditors regarding accounting estimates and judgments.
