Pune: Calling for greater collaboration between regulators and the accounting profession, National Financial Reporting Authority (NFRA) Chairman Nitin Gupta said NFRA and the Institute of Chartered Accountants of India (ICAI) must work in a complementary manner to improve audit quality and build a stronger financial reporting ecosystem in India.Addressing a seminar on ‘Creating a better financial reporting ecosystem’ jointly organized by ICAI Center for Audit Quality Council, NFRA and ICAI WIRC Pune Chapter, Gupta said that in the era of digital transformation and artificial intelligence, the responsibilities of auditors have increased significantly.“India is becoming the world’s third largest economy. To sustain this growth, the country needs strong corporate governance, reliable financial reporting and high-quality auditing. Investor confidence is based on credible audits and external auditors are the guardians of the public interest,” Gupta said.
He noted that auditors play a key role in identifying risks and irregularities before they escalate into a larger financial crisis. Addressing global corporate scandals such as Enron and WorldCom, Gupta said financial reporting systems must continue to evolve by learning from past failures and strengthening oversight mechanisms.Highlighting the huge opportunities facing the industry, Gupta said India has nearly 1.85 million registered companies, including about 6,000 listed entities, and the capital market is expanding rapidly. “While this growth presents huge opportunities for chartered accountants, maintaining the highest standards of audit quality is non-negotiable,” he said.
ICAI President CA Prasanna Kumar D said that continuous professional development is crucial to meet the growing expectations of stakeholders. “Public trust is the profession’s greatest asset. Today, stakeholders expect more than ‘true and fair’ opinions. Chartered accountants must keep up with emerging technologies, governance requirements and ever-changing business risks,” he said.He said ICAI has introduced new frameworks and standards in areas such as forensic accounting and information systems auditing. More than 50,000 professionals have participated in more than 800 artificial intelligence training programs organized by the institute. Measures such as the Digital Capability Model and the Audit Quality Maturity Model are helping professionals adapt to the rapidly changing environment, he added.CA Prasanna Kumar D and Nitin Gupta addressed the opening ceremony and ICAI Vice Chairman CA Mangesh Kinare extended his thanks.The one-day workshop included technical sessions on Audit Strategy Documentation, Risk of Material Misstatement (ROMM), Accounting Estimates in Audits: Addressing Judgment, Uncertainty and Risk, and Audit Conclusions: Assessment of Audit Findings and Summary of Audit Variances (SUM). The meeting was chaired by CA Amitesh Dutta, CA Milan Mody, CA Abhijeet Bhagwat and NFRA Executive Director Arun Kumar.The panel discussion titled “Enhancing Audit Quality – Global Best Practices” featured former ICAI Chairman CA Praful Chhajed, audit professional CA Nikhil Kenjale and ICAI Audit Quality Committee Center Vice Chairman CA Pramod Jain. The discussion was moderated by NFRA Executive Director Shyam Tonk.Attendees included NFRA Executive Directors Shyam Tonk and Arun Kumar; CA Pramod Jain, Vice Chairman, Central Committee on Audit Quality; CA Praful Chhajed, Former Chairman, ICAI; CA Pranav Apte, Chairman, ICAI Pune Chapter; Regional Council Members CA Abhishek Dhamane; CA Yeka Karman; CA Sarika Dindoka; CA Hrishikesh Badve; and CA Pritesh Munot, among others.The workshop focused on improving audit quality, strengthening financial reporting standards and promoting greater collaboration between regulators, auditors and financial reporting agencies to support India’s changing economic landscape.
