NFRA issues toolkits to improve quality of audit by small, mid-sized accounting firms

The National Financial Reporting Authority (NFRA) has started issuing toolkits on fundamental aspects of audits to bolster awareness among small and medium accounting firms.

“This (audit practice) toolkit is intended to be a sample document which is scalable and adaptable to different sizes and industry categories of the auditee companies,” the regulator said in a statement on Monday.

The move is part of the NFRA’s drive to support the overall auditing quality in India, it said. This is in continuation of the regulator’s recent initiatives to undertake outreach programmes for audit firms and practitioners.


NFRA has issued the toolkit on the development and document of audit strategy commensurate with the risk profile of the auditee entity.

The audit regulator intends to issue similar toolkits covering other significant audit areas during the course of the financial year, it said in the statement.

Outreach programmes
Since September, the NFRA has held outreach programmes across select cities, such as Hyderabad and Indore, to bolster stakeholder engagement with audit professionals and enhance sustainable audit practices for accounting firms of all sizes.

These programmes are tailored to gather stakeholder feedback, outline expectations, boost technical knowledge and encourage adoption of best practices, especially in relation to audits of public interest entities, the regulator had said in September.

The new series builds on NFRA’s 2024 initiatives undertaken in association with the Bombay Chartered Accountants Society and the Karnataka State Chartered Accountants Association, the regulator had then said.

NFRA has also launched its "Audit Firms Survey 2025", with an aim to address audit quality issues and support all audit practitioners.

The experiences from these will enable NFRA to further refine its roles and allow constructive dialogue with all audit firms and audit practitioners, the regulator had said in September.