The National Financial Reporting Authority (NFRA) published its second 'Audit Practice Toolkit' to enhance audit quality in India on January 1, 2026. NFRA commenced issuing Audit Practice Toolkits in November 2025, focusing on supporting small and medium practitioners engaged in audits. The latest toolkit is titled ‘Risk & Response Memorandum: ROMM (Risk of Material Misstatement) Assessment at Assertion Level for Revenue’. According to NFRA Chairperson Shri Nitin Gupta, the toolkit deals with the assessment of ROMM for various material financial statement line items and is adaptable to different types and sizes of audit engagements. NFRA expects the toolkit to be a practical guide for small and medium-sized practitioners. Further, NFRA plans to issue more sample Audit Practice Toolkits in other significant audit areas during the rest of the financial year. The toolkits are available on the NFRA website: https://nfra.gov.in/stakeholder-outreach-and-engagement/.
Key Entities Referenced
National Financial Reporting Authority (NFRA): The primary entity responsible for issuing the Audit Practice Toolkit.
Audit Practice Toolkit: A set of guidance documents aimed at enhancing audit quality in India, especially for small and medium practitioners.
Risk & Response Memorandum: ROMM (Risk of Material Misstatement) Assessment at Assertion Level for Revenue: The title of the Audit Practice Toolkit issued by NFRA.
National Financial Reporting Authority
National Financial Reporting Authority (NFRA)
publishes second ‘Audit Practice Toolkit’ to
enhance audit quality in India
प्रव तथ: 01 JAN 2026 6:06PM by PIB Delhi
The National Financial Reporting Authority (NFRA) commenced in November 2025 issuing Audit
Practice Toolkits with a focus on supporting the small and medium practitioners engaged in the audits.
The initiative is part of NFRA’s systemic drive to continue to support the overall quality of auditing
practices in India. This is in continuation of NFRA’s recent initiatives to conduct outreach programs for
audit firms and audit practitioners, especially focusing on small and medium practitioners.
Now, NFRA has issued an Audit Practice Toolkit titled ‘Risk & Response Memorandum: ROMM (Risk of
Material Misstatement) Assessment at Assertion Level for Revenue’. This Audit Practice Toolkit deals
with a critical phase of audit i.e., assessment of ROMM for various material financial statement line
items. Shri Nitin Gupta, Chairperson, NFRA said this sample document is adaptable to different type and
sizes of audit engagements.
Therefore, this is expected to be a practical guide to many Small & Medium-size practitioners who can
use it by suitably amending the contents based on facts and circumstances of their audit engagements.
During the rest of the financial year, NFRA plans to issue sample Audit Practice Toolkits in a few other
significant audit areas.
The toolkits are available on NFRA website at the link - https://nfra.gov.in/stakeholder-outreach-and-enga
gement/
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