Focus on adaptive regulation should be sustained, Venkatram
Responsibility needs to be in the DNA of business, and in that sense Business Responsibility and Sustainability Reporting (BRSR) framework is not a compliance exercise – it is in the culture of a business; it is about how and why we do business.
This was highlighted at a recent CII conference on “Financial Reporting & Governance Framework – Building Trust” by Mark Billington BFP FCA, Managing Director International, the Institute of Chartered Accountants in England and Wales (ICAEW).
“India has selected ‘responsibility’ as the second word in its transformational BRSR framework as the responsible business section of the BRSR particularly resonates with chartered accountants,” he told more than 200 delegates at the one-day conference.
Five lines of defence (Management, Audit Committee and Independent Directors, Auditors, Investors and Regulators) are the building blocks of sound Corporate Governance
Also highlighted at the conference was the need to enhance trust in financial and non-financial reporting system and corporate governance for corporates and all stakeholders.
Stating this on the 13 Mar conference, Dr Ajay Bhushan Prasad Pandey, Chairperson, National Financial Reporting Authority emphasised, “The five lines of defence of financial reporting and sound corporate governance viz. Management, Audit Committee and Independent Directors, Auditors, Investors and Regulators”.
Dr Pandey pointed out, “All five lines of defence needs to be vigilant and work together to build trust.”
He assured, “NFRA intends to engage with Audit Committees and Independent Directors at time of inspections to gather perspective as a part of larger efforts to improve audit quality as well as corporate governance”.
Dr Pandey added, “Amid the fourth industrial revolution the growing use of technology in various facets of audit ranging to detection of frauds to identification of Related Party Transactions (RPTs), NFRA is looking at establishing an Innovation Lab or Sandbox to support cutting-edge auditing techniques.”
Dr Pandey further mentioned that the investor community expect auditors to exercise professional scepticism and follow path of ‘Trust but Verify’ and thus, emphasised the need for Indian audit firms to start ‘risk-based’ pricing for their audits.
Dr Pandey recognised the pace at which non-financial reporting is moving and emphasized on the need for global convergence on reporting standard and assurance standard in ensuring high-quality trustworthy Financial and Non-Financial Reporting and Corporate Governance in the Corporate Sector.
N. Venkatram, Chairman, CII National Committee on Financial Reporting and Partner, Deloitte India, added, “India has the opportunity to reap the benefits presented by its demography and the digital dividend.
“The focus on adaptive regulation should be sustained, keeping pace with innovation and technological progress”.
Speakers at the Conference, the financial luminaries lauded CII for its constant endeavours in providing a platform for deliberations on contemporary issues concerning industry.
The conference deliberated on vital topics including Building Trust in Financial Reporting – Strengthening Corporate Communication; Laws and Regulations- Streamlining Requirements, Sustainability Reporting-Putting Principles into Practice, Harnessing Technology in Strengthening Reporting and Governance. Fiinews.com
