New Delhi: The Supreme Courtroom will on 13 October hear audit watchdog Nationwide Monetary Reporting Authority’s (NFRA) enchantment in opposition to a Telangana excessive court docket order which stayed proceedings in opposition to an audit agency, saying the regulator, at first impression, doesn’t have powers over audits performed earlier.
The apex court docket’s order on Friday to challenge discover to the audit agency P. Murali & Co. and to listen to the audit watchdog’s plea subsequent month means that the problem of jurisdiction of NFRA over audits performed earlier than the regulator’s creation will probably be settled on the highest stage. The apex court docket order is posted on its web site.
NFRA was arrange on 1 October 2018.
The problem to the regulator’s retrospective jursidiction arose from petitions filed by audit corporations in numerous courts together with the one on which the Telangana excessive court docket gave its prima facie opinion.
Mint reported on 13 July that the Supreme Courtroom had dismissed a petition elevating questions on the watchdog’s retrospective jurisdiction in one other case and that the regulator was set to make clear about its statutory powers as per a route from the Bombay excessive court docket.
Emails despatched on Monday to NFRA and to P. Murali & Co. in search of feedback for the story remained unanswered on the time of publishing.
The apex court docket’s choice to rapidly take up the regulator’s petition highlights the pressing have to settle the matter provided that NFRA’s statutory oversight is vital for guaranteeing the credibility of economic statements and good company governance. The matter is important as a result of a few of the regulatory motion taken by NFRA pertains to the monetary years previous to its creation. Coverage makers desire a sturdy regulatory structure governing statutory audits of corporations because the nation’s potential to draw investments hinges on the transparency and credibility of the monetary statements of corporations.
The Telangana excessive court docket in its order final month stated that the regulator took motion retrospectively in regard to the audits performed previous to yr 2018 and stayed sure proceedings.
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Up to date: 25 Sep 2023, 03:34 PM IST
Supply: Live Mint