The audit watchdog National Financial Reporting Authority (NFRA) said on Friday that as of March 31, 2021, 6,820 enterprises and nearly 2,000 auditors will fall under its regulatory purview.
The watchdog maintains a database of organizations that fall within its regulatory scope. The most recent database demonstrates an improvement over the 6,500 companies under its scrutiny in a previous database from 2019.
The updated regulated entity database includes 5,563 listed firms, 1,156 unlisted firms, and 101 insurance and banking companies. There are also 2,079 auditors included in the database.
The creation of this database entails processes such as identifying and verifying the primary data source and reconciling data such as business identification numbers from various sources. According to the regulator, it is tasked to supervise compliance by ‘public interest entities,’ which include all listed firms and major unlisted entities. The entity database clarifies legislative duties for corporations and their auditors.
NFRA had already taken strong steps for the statutory auditors of Infrastructure Leasing & Financial Services Ltd. businesses following the group’s financial failure, which resulted in the state changing the group’s board of directors with a state-appointed one. The regulator takes accounting and auditing violations severely.
