CIC Urges NFRA to Share Audit Guidelines Publicly
The Central Information Commission (CIC) in India has asked the National Financial Reporting Authority (NFRA) to make its orders, directions, circulars, and policy decisions available to the public. This move aims to improve transparency in audit practices and standards.
The CIC addressed this recommendation during its response to an appeal filed under the Right to Information (RTI) Act. The appeal sought information related to the NFRA’s decision allowing auditors and their legal representation during oral hearings.
Highlighting the need for transparency in auditing rules, the Commission stated that making such information publicly accessible would help foster trust in financial reporting. They emphasized that any information affecting audit standards should be shared openly for the benefit of the public.
The CIC also reminded the NFRA of its responsibilities under the RTI Act to proactively publish relevant information. The order pointed out that the NFRA is required by law to share specific details on its website, which would minimize the need for the public to use the RTI Act to request such information.
Established in 2018 under the Companies Act, the NFRA is responsible for overseeing auditors and ensuring compliance with accounting standards. Its duties include monitoring audit quality to support reliable financial disclosures.
Information Commissioner PR Ramesh noted that the NFRA plays a crucial role in maintaining the integrity of financial statements, which are essential for investors, lenders, regulators, and the general public.
