The National Financial Reporting Authority (NFRA) has urged the government to initiate action against 1,011 auditors and audit firms for failing to submit requisite filings.
The auditing watchdog has recommended to the corporate affairs ministry to take action against the non-compliant entities under the companies law.
Under NFRA rules, auditors/audit firms of a certain class of companies are required to file with the regulator an annual return in a specified form -- NFRA-2. The filing has to be done on or before November 30 every year.
For the reporting period -- FY 2018-19 -- the due date was extended till September 2020.
In March 2021, NFRA identified cases of non-compliance with the above statutory requirements for the 2018-19 period, a release said on Thursday.
"NFRA had sent intimations to such erring Audit Firms and had also sought the co-operation of ICAI in creating awareness of this statutory requirement among its practising members.
"However, still there have been many instances of continued non-compliance with the above referred statutory obligations by the audit firms," the release said.
Against this backdrop, NFRA has advised the ministry to initiate necessary action against "1,011 auditors/audit firms".
The regulator was constituted under Sub Section (1) of Section 132 of the Companies Act, 2013, in October 2018.
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)