NFRA sets up advisory committee on audit quality, assurance and technology

NEW DELHI: The National Financial Reporting Authority (NFRA) has constituted an Advisory Committee on Audit Quality, Assurance and Technology to provide expert inputs on issues that have a significant bearing on audit quality.

The committee has been constituted under Rules 15 and 16 of the National Financial Reporting Authority Rules, 2018, which empower NFRA to form committees, study groups and task forces for the effective discharge of its functions under the Act.

The committee brings together experts representing a range of NFRA stakeholder groups, including professionals, chief financial officers, audit committees, independent directors, technology experts, regulators and industry.

According to NFRA, the committee will provide inputs and suggestions on matters relating to audit quality, assurance and technology, while supporting measures aimed at promoting awareness of auditing and accounting standards and the importance of audit quality.

The newly constituted panel is the third such committee formed by NFRA. The first was the Technical Advisory Committee, constituted in 2020, whose term ended in December 2022.

In July 2024, NFRA had also constituted an Advisory Group of eminent experts to advise on auditor-audit committee resources. The group’s work included the Auditor-Audit Committee Interaction Staff Series and outreach activities involving audit committees and independent directors.

Who are the committee members?

The nine-member committee brings together professionals from technology, financial regulation, corporate finance, audit, assurance and corporate governance.

• Amit Jain — Technical Architect at iSPIRT Foundation, bringing technology expertise to the committee, particularly relevant to the increasing use of digital systems and technology in auditing.
• Ananth Narayan — Former Whole-Time Member of the Securities and Exchange Board of India (SEBI). His experience in financial-market regulation adds a regulatory perspective to the committee.
• Bharat Goenka — Chief Financial Officer of Hindalco Industries. He is a global finance leader with experience across India, the Middle East, Southeast Asia and North America. Before Hindalco, he was CFO of Mahindra & Mahindra’s automobile division and earlier spent more than two decades with Hindustan Unilever. He is a silver medallist Chartered Accountant and a Certified Practitioner of Decision Making Under Uncertainty from Stanford University.
• Milind Sarwate — Advisor, mentor, ESG contributor and independent director, bringing experience spanning corporate finance, governance and ESG-related issues.
• M. P. Vijay Kumar — Executive Director and CFO of Sify Technologies, contributing senior financial-management and technology-sector experience.
• Robin Banerjee — Chairman of Nucleon Research Pvt. Ltd., with senior corporate leadership and finance experience.
• Sanjeev Sood — Chief Assurance Executive at Axis Max Life Insurance, bringing specialist experience in assurance and risk-related functions.
• Sharmila Abhay Karve — Independent director who serves on the boards of several companies, including CSB Bank, Thomas Cook (India), EPL, Syngene International, Aadhar Housing Finance, Vanaz Engineers and Tata Electronics. She is a Chartered Accountant and has held senior leadership roles at PwC, including Ethics and Business Conduct Leader for PwC India and Head of Audit. She became the first person from India appointed to PwC’s Global Leadership Team and Global Human Capital Team in 2017.
• Shyamala Gopinath — Former Deputy Governor of the Reserve Bank of India and an independent director, bringing extensive experience in banking, financial regulation and corporate governance.

The composition reflects the wide scope of the committee’s mandate. NFRA has specifically identified issues such as auditing standards, emerging audit risks, data analytics, automation, artificial intelligence and machine learning, cybersecurity, cloud risks, ERP systems, APIs, digital payments and blockchain among the areas on which the committee may advise

Details of NFRA’s advisory groups and committees are available on the authority’s website.