NFRA 2nd inspection of Big 5 shows signs of improvement

National Financial Reporting Authority's (NFRA's) second inspection of the audit arms of the Big-5 firms is expected to be completed by October-end and initial findings suggest that most have taken measures suggested especially related to separation of audit and non-audit services.

- RUCHIKA CHITRAVANSHI

"There is now greater awareness among firms of issues related to independence. We have started seeing some improvements. They are fixing the issues which were pointed out," NFRA Chairperson Ajay Bhushan Pandey told Business Standard.

Pandey said that many of the firms have self-declared and brought in a policy to the effect that neither they nor their network associates would provide nonaudit services to their audit clients or their associates.