ICAI Seeks NFRA Nod For Simplified Auditing Framework For Smes

(MENAFN- KNN India) New Delhi, Dec 12 (KNN) The Institute of Chartered Accountants of India (ICAI) has finalised a new set of auditing standards aimed at small and medium enterprises (SMEs). The move is intended at reducing the disclosure requirements and simplify the processes for auditors.

The ICAI has submitted the draft to the National Financial Reporting Authority (NFRA) for approval and is expected to notify the standards once regulatory clearance is obtained.

Simplified Framework

The proposed standards are aligned with the International Financial Reporting Standards (IFRS) for SMEs framework. ICAI officials highlighted that over 90 percent of audited companies in India are small or medium-sized, and the simplified framework is expected to streamline audits without diluting core reporting responsibilities.

Key Changes in Proposed Standards

Currently, SMEs follow Standards on Auditing (SAs) issued by ICAI for statutory audits, which differ from Indian Accounting Standards (Ind AS) applicable to public interest entities.

The new standards will further ease compliance by reducing documentation, disclosures, and testing requirements, while retaining principles for presenting a true and fair view.

Calls for Further Clarity

Experts have welcomed the move but noted that more clarity is needed from ICAI on how these standards will differ from the existing auditing framework for SMEs.

(KNN Bureau)

MENAFN12122025000155011030ID1110473395