NFRA issues guidelines on audit quality inspection
The National Financial Reporting Agency (NFRA) on Friday released audit quality inspection guidelines to further improve standards for auditors.
The inspection guidelines are based on the recommendations of the International Forum of Independent Audit Regulators (IFIAR), which includes auditors from 54 countries.
The NFRA selects audit firms for such inspections based on their own risk identification parameters, along with other factors such as company size.
In some cases, audit firms are selected based on specific concerns highlighted by governments and other regulatory bodies.
“NFRA inspections are aimed at identifying areas and opportunities for improvement in audit firms' quality control systems,” the agency said in a statement on Friday. “The inspection consists of an enterprise-wide audit quality review (SQC1) and a test-check-based individual desk review to assess the level of compliance with applicable audit rules.