How is NFRA planning to use Artificial Intelligence?

NFRA is testing AI to enhance the efficiency and depth of its oversight of statutory audits, aiming to expedite workflows and analyze financial statements more effectively.

How many audit firms will NFRA inspect this financial year?

NFRA plans to inspect ten audit firms this financial year, which is the highest number in its seven-year history.

What is the purpose of NFRA's new reporting format for Ind AS 118?

The new reporting format under Ind AS 118 aims to provide investors with a clearer picture of financial performance by clearly presenting income and expenses in operating, investing, and financing groups.

Home / Business and Economy / NFRA Taps AI for Audit Oversight

NFRA Taps AI for Audit Oversight

26 Jan

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Summary

NFRA is exploring AI to enhance statutory audit oversight.
Ten audit firms to be inspected this financial year.
AI aims to expedite audit workflows and analysis.

The National Financial Reporting Authority (NFRA) is embarking on a significant initiative to integrate artificial intelligence (AI) into its oversight of statutory audits. Chairperson Nitin Gupta revealed that the regulator is in the early stages of testing AI, with the goal of enhancing the efficiency and depth of audit analysis.

This financial year, NFRA intends to conduct inspections of ten audit firms, the highest number in its seven-year history. These inspections focus on identifying risks in areas like related party transactions and internal controls, with findings published to benefit the entire audit sector.

NFRA's adoption of AI, developed in partnership with IndiaAI, is expected to accelerate data extraction, improve analysis of disclosures, and ensure consistent compliance with accounting standards. This modernization effort aims to strengthen regulatory supervision and boost confidence in India's audit framework.