Financial regulators back ISA 600 for auditors of listed companies

The National Financial Reporting Authority (NFRA) will invite public comments on the revised International Standard on Auditing 600 (ISA 600) proposed to be adopted by publicly listed companies and non-public-sector banks, sources close to the development told Business Standard.

- RUCHIKA CHITRAVANSHI

The decision to take this "graded approach" for the adoption of the ISA, which is meant to rein in auditors often found hiding behind the audit reports signed off by subsidiary companies, was taken at a meeting of various financial sector regulators at NFRA's board meeting on Monday. The idea behind upgrading the Standards of Audit 600 currently followed by Indian auditors to ISA 600 is to plug current gaps, which have led to major audit lapses in the recent past.

Auditors of public-sector banks and their branches, along with auditors of public-sector undertakings, would not be covered by ISA 600, it was decided in the meeting, the source said.