NFRA Proposes New Auditing Standards for LLPs

The National Financial Reporting Authority (NFRA), in its 19th meeting on November 25, 2024, finalised and recommended 40 Standards on Auditing (SAs) and Standards on Quality Management (SQMs) to the Central Government for LLP audits under Section 34A of the LLP (Amendment) Act 2021.

Seven out of eight NFRA members supported the proposal, with some reservations expressed by ICAI regarding specific SQMs and certain SAs. Once approved by the Central Government, these standards will take effect on April 1, 2026. It will be marking a significant step toward enhancing the audit framework for LLPs, aligning it with existing standards for companies. The recommendation reflects NFRA’s ongoing efforts to ensure consistency and reliability in financial reporting and audit quality.