The Institute of Chartered Accountants of India’s Financial Reporting Review Board (FRRB) has implemented new parameters to enhance the quality of auditing among companies. These include low audit fees, negative reserves, high leverage, and involvement in insolvency resolution processes. The parameters will be integral to reviewing corporate financials.
The FRRB reviews company financial statements to ensure adherence to Accounting Standards, Standards on Auditing, and the Companies Act’s Schedule II and III. It also checks compliance with guidance notes and RBI-issued master circulars/directions. A senior ICAI official emphasized that while the audit fee is a selection criterion, the primary interest is maintaining audit…