The Authority decides to recommend the 40 Standards on Auditing(SAs) and related Standards on Quality Management (SQMs)

The National Financial Reporting Authority held its 19th Meeting on 25 November 2024 to finalise and recommend Auditing Standards to the Central Government for notifying under Section 34A of LLP (Amendment) Act 2021. The Authority decided to recommend the 40 Standards on Auditing (SAs) and related Standards on Quality Management (SQM), which were finalised by the Authority in its18th Meeting held on 11-12 November 2024 for audit of Companies, to be applicable to audit of LLPs on a mutatis mutandis basis.

Out of 8 Members of NFRA attending the meeting, 7 Members-the representatives of  CAG, RBI, two independent experts Prof Narayanswamy, Retired Professor IIM Bangalore, Professor Sanjay Kallapur, Professor ISB, Hyderabad, two Full-Time Members of NFRA and Chairperson of NFRA were in support of the proposal.  The ICAI members also supported the proposals (President, ICAI attended, and Chairman, ASB and Chairman AASB conveyed views vide email) except for their reservations to SQMs, SA 299, SA 600 and SA 800, 810, 805, as expressed by them earlier in respect of the SAs and SQMs finalized in the last meeting and which were reiterated in respect of the proposal under consideration for the audit of LLPs.

Upon the approval of the Central Government, these Standards are recommended to be effective from 1.04.2026.

Auditing standards recommended for LLP audits, to apply mutatis mutandis and effective after government approval. The Authority recommended that 40 Standards on Auditing and related Standards on Quality Management, previously finalised for company audits, be applied to LLP audits on a mutatis mutandis basis and be notified to the Central Government under the LLP amendment, subject to government approval and proposed to take effect from 1 April 2026; ICAI representatives supported the proposal while reiterating reservations on certain SQMs and specified SAs.