Investors are at the very heart of the capital market and help to channelise savings of individuals into corporate funds. The investment decisions to a great extent are influenced by audited financial statements. Thus, there is a need for high quality disclosures in financial statements, which provide greater transparency and clarity of the business. Auditors help to establish a link between investors and businesses by establishing trust in the financial statements. It is therefore essential for investors to have confidence in the auditing process. In this regard, the Foundation for Audit Quality provides information and resources for investors on the auditing profession, oversight and governance of companies, and leading practices in the field of audit.

The role of audit committees and board members is pivotal in strengthening oversight on financial reporting, good corporate governance practices and raising the bar on audit quality. As business and financial risks amplify in an uncertain and rapidly changing environment, so does the oversight responsibilities of the audit committee and board members. The Foundation for Audit Quality aims to develop relevant resources and tools that would equip the audit committees and board members in achieving their objective of providing high-quality and reliable financial information to investors and other stakeholders.

In their course of promoting high quality financial reporting and investor protection, regulators help establish best practices in financial reporting by conducting regular inspections of auditing firms in India. We will work closely with the regulatory and policy making ecosystem by advocating policies relevant to accounting and auditing. The FAQ will also seek participation from regulators such as NFRA, MCA, SEBI, RBI, IRDA and ICAI as it shapes the agenda for the FAQ’s activities.