NFRA debars two partners for lapses in auditing DHFL

Move follows NCLAT upholding NFRA's jurisdiction on audits done before its constitution

- Gireesh Chandra Prasad

• 94% Creditors who favoured Piramal's resolution plan
• FY18 Period of misconduct in audit at DHFL

 The National Financial Reporting Authority (NFRA) has debarred two partners of a Mumbai-based firm for alleged professional misconduct in auditing Devan Housing Finance Corp. Ltd’s FY18 accounts, as part of the watchdog’s efforts to improve audit quality.

The regulator debarred a partner at Chaturvedi & Shah LLP for 10 years, and another for five years. The disciplinary orders apply to the individual partners, not the audit firm.

NFRA said in its order that the auditors had allegedly failed to meet the requirements of the audit standards, violated the law in significant areas, and did not apply professional scepticism and due diligence sufficiently to challenge management assertions. The order was signed off on Tuesday.