NFRA establishes Advisory Committee on Audit Quality, Assurance and Technology

The National Financial Reporting Authority (NFRA) has set up a new Advisory Committee on Audit Quality, Assurance and Technology to deepen its technical capacity on issues that directly influence audit quality in India. This Committee brings together professionals and experts from diverse stakeholder groups and is intended to guide NFRA on emerging issues in auditing, assurance, technology and governance.

The Committee has been created in exercise of NFRA’s powers under Rule 15 and Rule 16 of the National Financial Reporting Authority Rules, 2018, and represents the latest in a series of advisory bodies established to support NFRA’s regulatory and standard‑setting responsibilities.

Statutory basis for constituting the Advisory Committee

Powers under NFRA Rules 2018

NFRA has relied on specific enabling provisions under the National Financial Reporting Authority Rules, 2018 to constitute this Advisory Committee:

  • Rule 15 and Rule 16 expressly authorise NFRA to:

    • Form advisory committees, study groups and task forces
    • Facilitate the effective discharge of NFRA’s statutory functions under the Act
    • Undertake initiatives to disseminate awareness regarding:
      • The importance and role of auditing standards
      • The significance of accounting standards
      • The centrality of audit quality in the financial reporting ecosystem

  • These provisions allow NFRA to draw on external expertise, ensuring that regulatory and oversight decisions are informed by practical, technological and sector-specific perspectives.

Objective of the new Committee

The Advisory Committee on Audit Quality, Assurance and Technology has been tasked with advising NFRA in an advisory and consultative capacity on issues that have a material impact on:

  • Audit quality and consistency
  • Assurance frameworks
  • The use and governance of technology in audits
  • Emerging risks associated with digital and data-driven audit environments

The Committee’s mandate covers a broad range of topics, including auditing standards, quality control, ethical requirements, technology tools, cybersecurity, and sectoral risk identification.

Evolution of NFRA’s advisory mechanisms

Earlier advisory structures

This is the third advisory or expert group formed by NFRA to strengthen its institutional framework:

  1. Technical Advisory Committee (2020–2022)

    • NFRA had constituted a Technical Advisory Committee in 2020.
    • This body provided technical and professional guidance on accounting and auditing issues.
    • The tenure of this Committee came to an end in December 2022.

  2. Advisory Group (July 2024)

    • In July 2024, NFRA set up an Advisory Group of eminent experts with a specific focus on:

      • Resources and guidance relevant to Auditor–Audit Committee interactions
      • The Auditor-Audit Committee Interaction (Staff) Series
      • Outreach and capacity‑building initiatives involving:
        • Audit Committees
        • Independent Directors

    • This Group is aimed at enhancing communication, expectations-setting, and mutual understanding between auditors and governance bodies within companies.

Positioning of the new Advisory Committee

The newly constituted Advisory Committee on Audit Quality, Assurance and Technology complements these earlier efforts by:

  • Concentrating on the intersection of audit practice, technological innovation and regulatory expectations
  • Providing structured inputs on how digital tools, automation and analytics are affecting audit planning, execution and documentation
  • Assisting NFRA in anticipating emerging risks and in tailoring its oversight and guidance accordingly

NFRA has indicated that full details of both the Advisory Group constituted in July 2024 and the present Advisory Committee are accessible on its official website at:

https://nfra.gov.in/advisory-groups-committees-of-nfra/

Composition of the Advisory Committee

Representation from diverse stakeholder groups

The Advisory Committee has been intentionally designed to include members from multiple constituencies within the financial reporting and corporate governance ecosystem. As per the announcement dated 04 SEP 2026 8:17PM (PIB Delhi), the Committee includes representation from: