NFRA recommends 40 Standards on Auditing for notification under the LLP Act
On 25 November 2024, the National Financial Reporting Authority at its 19th meeting decided to recommend 40 Standards on Auditing and related quality management standards to the Centre for notification under Section 34A of the LLP (Amendment) Act, 2021.
Summary
On 25 November 2024, the National Financial Reporting Authority (NFRA) held its 19th meeting and decided to recommend 40 Standards on Auditing (SAs) and related Standards on Quality Management (SQMs) to the Central Government for notification under Section 34A of the Limited Liability Partnership (Amendment) Act, 2021. Of the 8 members present, 7 — including the representatives of the CAG and RBI, two independent experts, two full-time members and the Chairperson — supported the proposal. Subject to government approval, the standards are recommended to take effect from 1 April 2026.
Key facts
- Meeting
- NFRA 19th meeting, 25 Nov 2024
- Recommended
- 40 Standards on Auditing + related SQMs
- Law
- Section 34A, LLP (Amendment) Act, 2021
- Vote
- 7 of 8 members present in support
- Proposed effect
- 1 April 2026
Practice MCQs 2 questions
At its 19th meeting on 25 November 2024, how many Standards on Auditing did the NFRA decide to recommend under the LLP (Amendment) Act, 2021?
Show answer
Correct answer: C — 40
PIB (MCA): NFRA decided to recommend 40 Standards on Auditing and related Standards on Quality Management under Section 34A of the LLP (Amendment) Act, 2021.
From which date has the NFRA recommended that the new auditing standards under the LLP (Amendment) Act take effect, subject to government approval?
Show answer
Correct answer: D — 1 April 2026
PIB (MCA): upon the Central Government's approval, the standards are recommended to be effective from 1 April 2026.