Due diligence must for auditors, says NFRA chief Ajay Bhushan

Auditors can't shy away from due diligence and be influenced by the legal opinion provided by the company or its management, National Financial Reporting Authority (NFRA) chairman Ajay Bhushan Pandey said on Friday, stressing that their duty is to flag fraud to the government when detected.

At an Assocham event here, he called on auditors to follow not just the letters of the rules but also the principles behind them.

"Financial reporting is a critical area because it boils down to good corporate governance and building trust among stakeholders. Trust in financial reporting will encourage investment in the economy," the NFRA chief said.