India regulator flags audit lapses
India’s National Financial Reporting Authority (NFRA) has reported audit lapses at six firms — including Deloitte — signaling tougher regulator scrutiny on audit quality and board oversight. That kind of enforcement typically increases board and audit‑committee focus on independence, documentation, and third‑party review processes. (taxscan.in)
NFRA published inspection reports on March 27, 2026 naming Deloitte Haskins & Sells & Affiliates; Walker Chandiok & Co LLP; Umamaheswara Rao & Co; B D G & Co LLP; Singhi & Co; and CNK & Associates LLP, with the reports available on the regulator’s website. (theweek.in) (nfra.gov.in/documents) NFRA’s report on Deloitte specifically noted the firm’s Non‑Audit Service (NAS) policy applied only to Deloitte India entities and did not include safeguards to prevent prohibited NAS from non‑India network firms being provided to Indian group clients. (theweek.in) (taxscan.in) The Walker Chandiok inspection flagged potential auditor‑independence conflicts tied to its global Grant Thornton affiliation and criticised weak separation between audit work and management advisory services on some engagements. (taxscan.in) (financialexpress.com) Inspection reports for Singhi & Co, CNK & Associates, B D G & Co and Umamaheswara Rao listed concrete deficiencies in quality‑control frameworks, audit documentation practices, testing of related‑party transactions and internal financial‑control assessments. (nfra.gov.in/documents) (legal.economictimes.indiatimes.com) The March releases follow an earlier NFRA wave in mid‑March that flagged audit‑quality shortcomings at affiliates of PwC, KPMG, EY and BDO, signalling a coordinated, network‑level review across multiple global audit networks. (taxmann.com) (cfo.economictimes.indiatimes.com) The NFRA operates under Section 132 of the Companies Act, 2013 and exercises powers to conduct inspections and publish findings publicly; the agency’s website hosts the full inspection reports referenced above. (nfra.gov.in) (nfra.gov.in/documents)
