NFRA Forms Nine-Member Advisory Committee on Audit Quality, Assurance and Technology Economy, Corporate Governance and Regulation GS Paper III 5 September 2026 Read highlighted facts first FAST READ — read only this box if short on time
- NFRA constituted a nine-member Advisory Committee on Audit Quality, Assurance and Technology.
- NFRA derives authority from Section 132 of the Companies Act, 2013.
- NFRA was constituted in 2018.
- The committee focuses on audit quality, standards, assurance and technology.
- AI and analytics can strengthen audits but introduce cybersecurity and algorithmic risks.
WHY IN NEWS
- The committee reflects the rapid technological transformation of auditing and financial reporting.
- Reliable independent audits are critical for investors, lenders and corporate accountability.
TOP DATA & FACTS
- NFRA = **National Financial Reporting Authority.
- Committee size**: 9 members.
- Statutory basis: Section 132, Companies Act, 2013.
- NFRA monitors audit quality within its jurisdiction.
- Audit reduces information asymmetry between management and stakeholders.
- Analytics can examine larger datasets than traditional sampling.
- Automated tools still require professional judgement.
- Sustainability reporting is creating new assurance needs.
HISTORICAL PERSPECTIVE
- Corporate failures strengthened the case for independent audit oversight beyond professional self-regulation.
ECONOMIC PERSPECTIVE
- Credible audits can reduce the cost of capital and improve investor confidence. Audit failure can create major losses.