The National Financial Reporting Authority (NFRA) aims to extend its auditing standards to limited liability companies (LLPs), in a significant move towards financial transparency announced on Monday.

The NFRA previously finalized 40 auditing standards (SAs) and related quality management (SQM) standards for businesses. These are proposed to be applicable to LLPs, pending government approval by April 2026. The development comes after a crucial regulatory meeting held on November 11-12.

Despite opposition from the Institute of Chartered Accountants of India (ICAI), the NFRA proposal was supported by seven out of eight members, including senior representatives of the Comptroller and Auditor General (CAG), Reserve Bank of India (RBI) and independent organizations. experts.

(With input from agencies.)