Audit push: NFRA releases second audit practice toolkit; focuses on revenue risk assessment
The National Financial Reporting Authority (NFRA) on Thursday said it has rolled out its second Audit Practice Toolkit to support small and medium audit practitioners across the country, as part of its broader effort to improve the quality of auditing practices, PTI reported.The toolkit, titled ‘Risk & Response Memorandum: ROMM (Risk of Material Misstatement) Assessment at Assertion Level for Revenue’, focuses on a key stage of the audit process involving the identification and assessment of risks of material misstatement in revenue, the audit regulator said in a release.NFRA said the initiative builds on its recent outreach programmes for audit firms and practitioners, with a particular emphasis on small and medium-sized practitioners.
The authority began issuing audit practice toolkits in November 2025 as part of a systemic approach to strengthening audit quality.NFRA chairperson Nitin Gupta said the sample document has been designed to be adaptable to different types and sizes of audit engagements.The regulator said the toolkit is expected to serve as a practical guide for many small and medium practitioners, who can use it by suitably amending the contents based on the facts and circumstances of their respective audit engagements.NFRA added that it plans to issue sample audit practice toolkits covering a few other significant audit areas during the remainder of the financial year.
