On 25 November 2024, the National Financial Reporting Authority (NFRA) finalized and recommended 40 Standards on Auditing (SAs) and related Standards on Quality Management (SQMs) to the Central Government under Section 34A of the LLP (Amendment) Act 2021. These standards, initially finalized for company audits in the NFRA’s 18th Meeting, will now apply to audits of Limited Liability Partnerships (LLPs) on a mutatis mutandis basis. The proposal received broad support from 7 of the 8 NFRA members present, including experts from the RBI, CAG, and academia, alongside ICAI representatives. However, the ICAI expressed reservations about certain SQMs and auditing standards, particularly SA 299, SA 600, and SA 800, 810, 805. Upon approval from the Central Government, the standard
Ministry of Corporate Affairs
NFRA finalises and recommends Auditing Standards to the Central Government for notifying under Section 34A of LLP (Amendment) Act 2021
The Authority decides to recommend the 40 Standards on Auditing(SAs) and related Standards on Quality Management (SQMs)
The National Financial Reporting Authority held its 19th Meeting on 25 November 2024 to finalise and recommend Auditing Standards to the Central Government for notifying under Section 34A of LLP (Amendment) Act 2021. The Authority decided to recommend the 40 Standards on Auditing (SAs) and related Standards on Quality Management (SQM), which were finalised by the Authority in its18th Meeting held on 11-12 November 2024 for audit of Companies, to be applicable to audit of LLPs on a mutatis mutandis basis.
Out of 8 Members of NFRA attending the meeting, 7 Members-the representatives of CAG, RBI, two independent experts Prof Narayanswamy, Retired Professor IIM Bangalore, Professor Sanjay Kallapur, Professor ISB, Hyderabad, two Full-Time Members of NFRA and Chairperson of NFRA were in support of the proposal. The ICAI members also supported the proposals (President, ICAI attended, and Chairman, ASB and Chairman AASB conveyed views vide email) except for 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 finalized in the last meeting and which were reiterated in respect of the proposal under consideration for the audit of LLPs.
Upon the approval of the Central Government, these Standards are recommended to be effective from 1.04.2026.
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