The National Financial Reporting Authority (NFRA) January 07, 2026, issued a circular regarding effective Communication between Statutory Auditors and those charged with Governance, including Audit Committees.
The following has been stated: -
•NFRA issued a circular directing listed companies, specified bodies corporate, and their auditors to strengthen two-way communication between statutory auditors and those charged with governance (Board/Audit Committees).
•It reiterates obligations under the Companies Act, 2013, and Standards on Auditing (SA 260 & SA 265) on audit planning, risk assessment, internal controls, and timely written communication.
•NFRA highlighted common non-compliances such as improper identification of TCWG, inadequate documentation, and failure to report key risks, unusual transactions, or internal control weaknesses.
•The circular recommends structured communication frameworks, regular meetings, clear documentation, and defined roles to improve audit quality, governance, and investor confidence.
The detailed circular is given in the document below.
[Circular No.:NF-25013/3/2025—NFRA]
