Under the revised standards, which are set to take effect from 1 April 2026 upon government approval, group auditors would be held accountable for overseeing the component auditor’s work, evaluating their communications and assessing the adequacy of their audits.
The revisions will apply to Public Interest Entities (PIEs), including most listed companies, but will exclude public sector banks, PSUs, and public sector insurance companies.
The revisions would impact approximately 17,450 listed holding companies and their subsidiaries, including unlisted ones. The proposed SA 600 update also requires joint auditors to share responsibility equally, aligning with practices in the UK, Australia, and Singapore.
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The NFRA recommended adopting the term “IndSAs” for these revised standards, consistent with the naming conventions of other international auditing standards.
Out of 11 NFRA board members, eight supported the proposed changes, representing key institutions such as the Comptroller and Auditor General of India, the Reserve Bank of India, and the Securities and Exchange Board of India.
However, three representatives from the Institute of Chartered Accountants of India (ICAI) disagreed, raising concerns about the changes in SA 600 and other standards on Quality Control and Quality Management.
The NFRA also approved 33 other Auditing Standards in line with global counterparts, reinforcing its commitment to aligning Indian auditing practices with international benchmarks.
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