The National Financial Reporting Authority (NFRA), the country’s sole independent audit regulator, has published a list of audit firms/ auditors who have not filed the mandatory e-form, NFRA-2, for the reporting period 2018-19 and 2019-20.

The annual return is to be filed in accordance with Rule 5 of the National Financial Reporting Authority Rules, 2018. The auditors/ audit firms of the class of companies specified in Rule 3 are required to file the annual return on or before November 30 every year.

Even in the past, NFRA has identified cases of non-compliance with the above statutory requirements, and sent intimations to the defaulting firms. A list of such firms/ auditors has been published on the NFRA website and intimated to the Ministry of Corporate Affairs.

NFRA-2 for the reporting period 2018-19 (audit reports signed during the period 01.04.2018 to 31.03.2019) was to have been filed by November 30, 2019. 

As it was the first year of filing, the date was extended up to September 4, 2020. A review revealed that a total of 617 audit firms/ auditors have still not filed NFRA-2 for the reporting period 2018-19.

For the next reporting period, 2019-20 (audit reports signed during the period 01.04.2019 to 31.03.2020), a total 1,684 audit firms have so far not filed NFRA-2, the due date for which was November 30, 2020.

The list of audit firms/ auditors in default in respect of both these years is available on the NFRA website. The defaulting audit firms/ auditors are also being intimated by the audit regulator.

Non-filing of the form is a non-compliance covered under NFRA rules and attracts penal provisions. The rule was further amended vide amendment rules dated June 17, 2022. 

The list of defaulting audit firms/ auditors for the reporting period after 2020-21 is also being reviewed and will be published soon, NFRA has said.

The due date for the reporting period 2021-22 (audit reports signed during the period 01.04.2021 to 31.03.2022 is November 30, 2022.

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