The National Financial Reporting Authority (NFRA) on Monday said it has decided to recommend various auditing standards for Limited Liability Partnerships (LLPs).
The 40 Standards of Auditing (SAs) and related Standards on Quality Management (SQM), which were finalised by the regulator earlier this month for audit of companies will be "applicable to the audit of LLPs on a mutatis mutandis basis," a press release said.
During its meeting on November 11-12, the watchdog approved 40 SAs and related Standards on Quality Management. However, the Institute of Chartered Accountants of India (ICAI) members had opposed some of them.
Eight members of NFRA attended the meeting on Monday. Out of them, seven members, including the representatives of the CAG, RBI, two independent experts — Narayanswamy, Retired Professor IIM Bangalore, and Sanjay Kallapur, Professor ISB, Hyderabad — supported the proposals.
NFRA's chairperson and two full-time members also supported the proposals, the release said.
Among the ICAI representatives, its president was present at the meeting, while two others conveyed their views through emails, according to the release.
ICAI members expressed their reservations to "SQMs, SA 299, SA 600 and SA 800, 810, 805, as expressed by them earlier in respect of the SAs and SQMs finalised in the last meeting and which were reiterated in respect of the proposal under consideration for the audit of LLPs", the release noted.
NFRA has a total of 12 members.
While SA 299 relates to the liability of joint auditors, SA 600 pertains to the audit of group companies.
SA 800 pertains to audits of financial statements prepared in accordance with special purpose frameworks, and SA 810 relates to engagements to report on summary financial statements. SA 805 pertains to audits of single financial statements and specific elements, accounts or items of a financial statement.
Once the central government approves the proposals, the recommended standards will come into effect from April 1, 2026.
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