Technical Guide on Audit of Non-Banking Financial Companies (Revised 2023 Edition): Non-Banking Financial Companies (NBFCs) are an important segment of the Indian financial sector. NBFCs cater to the funding requirements of organized as well as unorganized sector like small scale industries, small entrepreneurs, people in self employment, etc. The diversified range of services provided by the NBFCs and large quantum of public finance involved in NBFCs require more disciplined environment of financial reporting by NBFCs. In view of this, the Reserve Bank of India, from time to time prescribes and updates regulatory framework for NBFCs to bring discipline broadly in the registration and functioning of NBFCs. The Auditing and Assurance Standards Board (AASB) of ICAl reviews the framework issued by RBI and identifies the peculiarities related to statutory audit that need to be addressed.
In 2010, the AASB of ICAl issued the “Technical Guide on Audit of Non-Banking Financial Companies” to provide detailed guidance to the members regarding audit of NBFCs. The Technical Guide was last revised in 2016. I am happy to note that the AASB has now brought out this Revised 2023 Edition of the “Technical Guide on Audit of Non-Banking Financial Companies” which is quite comprehensive in its coverage, dealing with various aspects of audit of NBFCs.
I wish to place my appreciation for CA. (Dr.) Sanjeev Kumar Singhal, Chairman, CA. Vishal Doshi, Vice Chairman and other members of the Auditing and Assurance Standards Board for their efforts in bringing this publication to enhance the knowledge and skills of members conducting audits of NBFCs.
I am confident that the members would find this Technical Guide immensely useful in their professional assignments.
CA. Aniket Sunil Talati President, ICAI