NFRA Scrutinizes Audit and Non-Audit Services Offered by Big Four Network and Other Firms
The National Financial Reporting Authority (NFRA), the regulatory body overseeing listed and large unlisted companies in the country, has turned its attention to the services provided by the Big Four network and other firms. The focus of their scrutiny is on both audit and non-audit services offered by these firms to their clients.
As the authority responsible for ensuring transparency and accountability in financial reporting, NFRA is closely examining the practices of the Big Four and other similar firms. This move reflects a growing concern about the potential conflicts of interest and independence issues arising from the provision of non-audit services alongside audit engagements.
The Big Four network, consisting of Deloitte, PwC, EY, and KPMG, is renowned globally for their audit and advisory services. However, there have been increasing calls for greater scrutiny regarding the potential impact of offering non-audit services on audit quality and objectivity.
NFRA’s investigation aims to assess whether these firms maintain the necessary separation between their audit and non-audit practices. By examining their offerings in detail, the authority seeks to ensure compliance with regulations and to safeguard the integrity of financial reporting.
This scrutiny not only applies to the Big Four network but also extends to other firms in the industry that provide audit and non-audit services. The objective is to instill confidence in the financial markets by addressing any potential conflicts of interest and ensuring the propriety of professional services rendered by these firms.
The exact outcomes and potential enforcement actions resulting from NFRA’s investigation will become clearer as the regulatory process progresses. The findings of this scrutiny have the potential to impact the landscape of auditing and non-audit services offered by these firms in the future.
