**Executive Summary**
This document is a response to an unstarred question in Lok Sabha regarding the initiatives of the National Financial Reporting Authority (NFRA) in enhancing audit quality and promoting sustainable audit practices. The response, dated December 01, 2025, outlines NFRA's public relations programs, the Audit Firm Survey 2025, and other steps taken to strengthen accounting quality and professional standards. The programs covered the period up to October 6, 2025, and addressed the outreach to stakeholders in Madhya Pradesh.
**Key Points / Main Content**
* **NFRA Outreach Programs:**
* Objective: Enhance audit quality and promote sustainable audit practices, especially for small and medium-sized audit firms.
* Program Title: "Creating a Better Financial Reporting World."
* Locations: Conducted at various locations across India.
* Specific Events:
* Hyderabad (26.09.2025): 65 practitioners, including representatives from 27 audit firms.
* Indore (06.10.2025): 42 practitioners, including representatives from 13 audit firms.
* **Audit Firm Survey 2025:**
* Objective: Address issues related to audit quality and support audit practitioners.
* Purpose: Gather insights to tailor NFRA's roles and responsibilities, enabling constructive dialogue.
* Participation: 383 firms across India participated.
* **Steps to Strengthen Accounting Quality and Professional Standards:**
* Authority Meetings: 21 meetings held; record notes placed on the NFRA website.
* Amendments to Ind AS: 47 amendments/changes recommended, with 44 notified.
* Accounting Standards for SMEs: A set of 27 Accounting Standards recommended and notified by the Ministry of Corporate Affairs.
* Auditing Standards: A set of 40 revised high-quality Standards on Auditing including revised Standard on Group Audits and Standards on Quality Management, has been suggested by NFRA.
* Disciplinary Action: Action taken for professional misconduct to sensitize the audit profession.
* Guidance: Issued circulars reiterating legal provisions and standards to prevent non-compliances.
* **Stakeholder Engagement in Madhya Pradesh:**
* Indore Program: One-day stakeholder Public Relations outreach programme and workshop held on 06.10.2025.
* Focus: Strengthening audit quality among Small and Medium Audit Practitioners (SMPs)
* Participation: 42 practitioners, including representatives from 13 audit firms from across Madhya Pradesh and adjacent regions.
* Registration: Voluntary; geographical attributes not captured.
**Impact Analysis**
**Stakeholder**: Audit Firms (all sizes, particularly SMEs)
**Impact**:
Affected by changes in standards, quality control measures, and disciplinary actions. The NFRA initiatives also aim to support audit firms in improving their practices.
**Action Required**:
Participate in surveys, adhere to revised standards, attend stakeholder programs, and ensure compliance with regulations.
**Stakeholder**: Accounting Professionals/Practitioners
**Impact**:
Subject to NFRA's regulatory oversight and affected by changes in accounting and auditing standards. Require ongoing professional development and compliance.
**Action Required**:
Stay updated on changes in accounting and auditing standards, attend outreach programs, and ensure compliance with regulations.
**Stakeholder**: Ministry of Corporate Affairs
**Impact**:
Responsible for notifying accounting standards based on NFRA's recommendations.
**Action Required**:
Review and notify recommended accounting standards and amendments.
**Stakeholder**: Business and Industrial Stakeholders (particularly in Madhya Pradesh)
**Impact**:
Benefited through improved audit quality and financial reporting, contributing to better governance and transparency.
**Action Required**:
No direct action indicated, but benefit from improved audit practices and transparency.
Key Entities Referenced
National Financial Reporting Authority (NFRA): The primary regulator and subject of the policy, responsible for overseeing accounting and auditing standards in India.
Ministry of Corporate Affairs: The ministry to which the NFRA is responsible.
Audit Firm Survey 2025: A survey launched by NFRA to gather feedback from auditors and address audit quality issues.
Public Relations Programs: Outreach programs conducted by the NFRA to enhance audit quality and promote sustainable audit practices.
Madhya Pradesh: Indian state that may benefit from the NFRA's initiatives.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 230
ANSWERED ONMONDAY, DECEMBER 01, 2025/ 10 AGRAHAYANA, 1947 (SAKA)
Audit Firm Survey 2025
QUESTION
230. Shri Shivmangal Singh Tomar:
Shri Chandan Chauhan:
Shri Shashank Mani:
Shri P P Chaudhary:
Shri Bunty Vivek Sahu:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) the details of the objectives and key themes of the series of Public
Relations Programs launched by the National Financial Accounting Authority
(NFRA);
(b) the details of the venues and schedule of these Public Relations
Programs, along with the number of participants and stakeholders involved so
far;
(c) the objectives of the “Audit Firm Survey 2025” launched by the NFRA
along with public relations activities to know about the challenges and get
feedback from auditors;
(d) the details of the steps taken by the NFRA to strengthen accounting
quality and professional standards across the country;
(e) whether the business and industrial stakeholders in Madhya Pradesh
particularly in the Chhindwara regions have also been benefited from these
intiatives; and
(f) if so, the details thereof?
ANSWERMINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND
MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND
HIGHWAYS.
(SHRI HARSH MALHOTRA)
(a) The initiative of National Financial Reporting Authority (NFRA)
through outreach programmes across the country is aimed at enhancing
audit quality and promoting sustainable audit practices for all sizes of
audit firms and especially the small & medium sized audit firms. The series
of outreach programme is titled “Creating a Better Financial Reporting
World” and are being organized at various locations across the country.
(b) Public Relations Programswere held as detailed below:
(i) At Hyderabad on 26.09.2025. It was attended by 65 practitioners,
including representatives from 27 audit firms.
(ii) At Indore on 06.10.2025. It was attended by 42 practitioners,
including representatives from 13 audit firms.
(c) NFRA initiated its first-ever “Audit Firms Survey 2025” alongside the
outreach activities aimed at addressing issues related to audit quality, and
towards its role of supporting all audit practitioners effectively. The
insights gathered will enable NFRA to further tailor its roles and
responsibilities and enable constructive dialogue with all audit firms and
audit practitioners. A total of 383 firms across India participated in the
survey.
(d)NFRA has taken the following main steps in keeping with its mandate:-
(i) 21 meetings of the Authority have been held. Record notes of all
Authority Meetings are placed on NFRA website as a measure of
transparency and for awareness of stakeholders on critical aspects of
standard setting.
(ii) A total of 47 amendments/changes to Ind AS (Indian Accounting
Standards) have been recommended of which 44 have been notified. A
set of 27 Accounting Standards for small and medium companies have
been recommended which have been notified by the Ministry of
Corporate Affairs.(iii) A set of 40 revised high-quality Standards on Auditing including
revised Standard on Group Audits and Standards on Quality
Management, have been suggested by NFRA.
(iii) NFRA has taken disciplinary action for professional misconduct
thereby sensitizing the audit profession regarding their responsibility
in law and accounting and auditing standards.Learnings from NFRA
orders has been published by the profession itself. NFRA has also
conducted webinars and is consistently engaging with stakeholders to
disseminate its experience and findings
(iv) NFRA has issued circulars, reiterating provisions in law and
standards, with a view to prevent recurrence of various types of non-
compliances and bring in systemic improvement in the quality of
financial reporting in India, aimed towards advising and guiding
various stakeholders.
(e) & (f) NFRA organized a one-day stakeholder Public Relations or
outreach programme and workshop in Indore on 06.10.2025. The Indore
programme focused on strengthening audit quality among Small and
Medium Audit Practitioners (SMPs) and brought together professionals
from across Madhya Pradesh and the adjacent regions to deliberate on
key aspects of audit practice in India’s evolving regulatory landscape. It
was attended by 42 practitioners, including representatives from 13 audit
firms. Registration for the workshops was voluntary and registration
details do not capture geographical attributes.
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