The regulatory updates publication issued by the Foundation for Audit Quality (FAQ) highlights the latest developments in accounting, auditing and regulatory developments in India and internationally.

Regulatory updates for March 2023

On 31 March 2023, the Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2023. These Rules notify certain amendments to the Indian Accounting Standards (Ind AS) which would be effective from 1 April 2023. They are in line with the amendments issued by the International Accounting Standards Board (IASB) to the International Financial Reporting Standards (IFRS). The Ind AS which have been primarily impacted by the amendments issued include – Ind AS 1, Presentation of Financial Statements, Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors, Ind AS 12, Income Taxes and Ind AS 101, First-time Adoption of Indian Accounting Standards.

Additionally, on 28 March 2023, the Institute of Chartered Accountants of India (ICAI) issued the Implementation Guide on Reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (the Audit Rules). Rule 11(g) of the Audit Rules read with Section 143(3) of the Companies Act, 2013 prescribes the reporting responsibility of the auditors with regard to audit trail. The key guidance provided by the Implementation Guide includes:

• Meaning of ‘audit trail’ and ‘accounting software’
• Preservation of audit trail
• Management’s responsibility
• Responsibility of the auditor
• Reporting considerations

This issue of the regulatory updates publication covers some of the important updates on accounting, auditing and regulatory matters for the period from 1 March 2023 to 31 March 2023. It also highlights some of the action points that auditors may consider when applying the relevant provisions.