Key Points
ICAI has argued that the. governs audit standards, which are notified by the ministry of corporate affairs, based on recommendation by the National Financial Reporting Authority (NFRA), the regulatory body dealing with auditors and audit firms for listed and large companies...
"SQM 1 and SQM 2 are quality management standards and these are not auditing standards..
The objective of these standards is to enhance and ensure quality at the firm's level for all services rendered by firms," it told TOI in response to a recent query...
Seeking to plug regulatory gaps, NFRA has been pushing ICAI to align the standard on auditing (SA) 600 with global norms, an issue on which it finally issued a draft and will be discussed at the next meeting of the authority this month..
In the meanwhile, ICAI has issued SQM, setting the stage for a possible flashpoint as NFRA has argued that it could result in ambiguity on how it can be implemented if the institute does not have jurisdiction over firms...
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