PUNE: Calling for greater collaboration between regulators and the accounting profession, National Financial Reporting Authority (NFRA) chairman Nitin Gupta said that NFRA and the Institute of Chartered Accountants of India (ICAI) must work in a complementary manner to strengthen audit quality and build a more robust financial reporting ecosystem in the country.Speaking at a workshop on ‘Creating a Better Financial Reporting Ecosystem’ organised jointly by the Centre for Audit Quality Committee of ICAI, NFRA, and the Pune Branch of WIRC of ICAI, Gupta said the responsibilities of auditors have increased significantly in the era of digital transformation and artificial intelligence.“India is on course to become the world’s third-largest economy. To sustain this growth, the country needs strong corporate governance, reliable financial reporting, and high-quality audits. Investor confidence is built on credible audits, and external auditors serve as guardians of public interest,” Gupta said.
He noted that auditors play a critical role in identifying risks and irregularities before they escalate into larger financial crises. Referring to global corporate scandals such as Enron and WorldCom, Gupta said financial reporting systems must continuously evolve by learning from past failures and strengthening oversight mechanisms.Highlighting the scale of opportunities before the profession, Gupta said India has nearly 18.5 lakh registered companies, including around 6,000 listed entities, and a rapidly expanding capital market. “While the growth presents immense opportunities for chartered accountants, maintaining the highest standards of audit quality is non-negotiable,” he said.
ICAI President CA Prasanna Kumar D said continuous professional development was essential to meet rising stakeholder expectations. “Public trust is the profession’s greatest asset. Today, stakeholders expect much more than a ‘true and fair’ opinion. Chartered accountants must keep pace with emerging technologies, governance requirements, and evolving business risks,” he said.He said ICAI has introduced new frameworks and standards in areas such as forensic accounting and information systems audit. More than 50,000 professionals have participated in over 800 artificial intelligence training programmes conducted by the institute. Initiatives such as the Digital Competency Model and the Audit Quality Maturity Model are helping professionals adapt to a rapidly changing environment, he added.The inaugural session featured addresses by CA Prasanna Kumar D and Nitin Gupta, while ICAI vice-president CA Mangesh Kinare delivered the vote of thanks.The day-long workshop included technical sessions on Audit Strategy Documentation, Risk of Material Misstatement (ROMM), Accounting Estimates in Audit: Navigating Judgment, Uncertainty and Risk, and Concluding Audit: Evaluation of Audit Results and Summary of Audit Differences (SUM). The sessions were led by CA Amitesh Dutta, CA Milan Mody, CA Abhijeet Bhagwat, and Arun Kumar, Executive Director, NFRA.A panel discussion on ‘Strengthening Audit Quality – Global Best Practices’ featured former ICAI President CA Praful Chhajed, audit professional CA Nikhil Kenjale, and CA Pramod Jain, Vice Chairman of the Centre for Audit Quality Committee, ICAI. The discussion was moderated by Shyam Tonk, Executive Director, NFRA.Among those present were Shyam Tonk and Arun Kumar, Executive Directors, NFRA; CA Pramod Jain, Vice Chairman, Centre for Audit Quality Committee; CA Praful Chhajed, former ICAI president; CA Pranav Apte, Chairman, ICAI Pune Branch; regional council member CA Abhishek Dhamane; CA Rekha Dhamankar; CA Rajesh Agrawal; CA Nilesh Yeolekar, Vice Chairman, ICAI Pune Branch; CA Nandkumar Kadam, Treasurer; CA Sarika Dindokar; CA Hrishikesh Badwe; and CA Pritesh Munot, among others.The workshop focused on enhancing audit quality, strengthening financial reporting standards, and fostering greater cooperation among regulators, auditors, and financial reporting institutions to support India’s evolving economic landscape.
