'Deficiencies' in audit work of top firms: NFRA

NFRA's audit quality inspection reports cover at least seven chartered accountant firms

- MANU KAUSHIK

THE NATIONAL FINANCIAL Reporting Authority (NFRA) has flagged several “deficiencies”in the work of major audit firms in India, including two PwC network firms, four KPMG affiliate firms,one EY affiliate firmanda BDO International network firm.

The regulator, in its inspection reports released on Monday, said these firms followed certain procedures that went against the auditing norms followed in the country.

In the case of PwC network firms, the NFRA said that during the inspection, it observed the firm detected a breach of independence involving five partners of the PW&A network and one partner of the PwC network. The breach involved acquiring securities in the holding company ofa firm forwhich the audit work was accepted.