Aligning with global audit standards critical to Viksit Bharat vision

AJAY BHUSHAN PANDEY, chairman, National Financial Reporting Authority (NFRA), in an interview with Ruchika Chitravanshi in New Delhi, says the latest reforms proposed to India's audit standards are historic and long overdue. Edited excerpts:

- AJAY BHUSHAN PANDEY

You have shared your recommendations with the Ministry of Corporate Affairs (MCA) on revising audit standards. What feedback have you received from the government?

In our most recent meeting, which included representatives from the Comptroller and Auditor General (CAG) and regulators, there was a unanimous agreement—except with the Institute of Chartered Accountants of India on a few matters—to align India's auditing standards with global benchmarks. One specific recommendation concerns SA 600, on which we conducted public consultation. The response was positive, with contributions from audit experts, leading audit firms, business chambers like the Confederation of Indian Industry, and industry leaders.

The Committee on Corporate Governance, headed by Uday Kotak, and the Company Law Committee, which consisted of experts from industry, too had supported such alignment.

High-quality corporate governance and robust financial reporting are essential in building investor trust, both domestically and globally.