Rule 8 Monitoring and enforcing compliance with auditing standards
(1) For the purpose of monitoring and enforcing compliance with auditing standardsDefined in rule 2(c): auditing standards means the 'auditing standards' as defined in clause (7) of section 2 of the Act under the ActDefined in rule 2(b): Act means the Companies Act, 2013 (18 of 2013) by a company or a body corporate governed under rule 3, the AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act may: -
(a) review working papers (including audit plan and other audit documents) and communications related to the audit;
(b) evaluate the sufficiency of the quality control system of the auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other... and the manner of documentation of the system by the auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other...; and
(c) perform such other testing of the audit, supervisory, and quality control procedures of the auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other... as may be considered necessary or appropriate.
(2) The AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act may require an auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other... to report on its governance practices and internal processes designed to promote audit quality, protect its reputation and reduce risks including risk of failure of the auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other... and may take such action on the report as may be necessary.
(3) The AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act may seek additional information or may require the personal presence of the auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other... for seeking additional information or explanation in connection with the conduct of an audit.
(4) The AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act shall perform its monitoring and enforcement activities through its officers or experts with sufficient experience in audit of the relevant industry.
(5) The AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act shall publish its findings relating to non-complainces on its website and in such other manner as it considers fit, unless it has reasons not to do so in the public interest and it records the reasons in writing
(6) The AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act shall not publish proprietary or confidential information, unless it has reasons to do so in the public interest and it records the reasons in writing.
(7) The AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act may send a separate report containing proprietary or confidential information to the Central Government for its information
(8) Where the AuthorityDefined in rule 2(e): Authority means the National Financial Reporting Authority constituted under sub section (1) of section 132 of the Act finds or has reason to believe that any law or professional or other standard has or may have been violated by an auditorDefined in rule 2(d): auditor means an individual or a firm including a limited liability partnership incorporated under the Limited Liability Partnership Act, 2008 (6 of 2009) or any other Act for the time being m force, who has been appointed as an auditor of a company or a body corporate under section 139 of the Act or under any other..., it may decide on the further course of investigation or enforcement action through its concerned DivisionDefined in rule 2(g): Division means a division 1[including the one headed by the chairperson or a full time member] established by the Authority for the purpose of organising and carrying out its functions and duties.