RBI bars statutory auditor for flouting directions on NBFC

12-10-2021 Tue 19:37 | Business | IANS

Mumbai, Oct 12: The Reserve Bank of India (RBI) has debarred chartered accountants Haribhakti and Co LLP from undertaking any type of audit assignments in any of the entities regulated by it for a period of two years with effect from April 1, 2022.

The action has been taken on account of the failure on the part of the audit firm to comply with a specific direction issued by the RBI with respect to its statutory audit of a Systemically Important Non-Banking Financial Company.

The RBI decision will, however, not impact audit assignments of the audit firm in RBI regulated entities for the financial year 2021-22.

The action against statutory auditors of the NBFC has been taken under section 45MAA of The RBI Act, 1934, empowers the central bank to take action against auditors of NBFCs.

(The content of this article is sourced from a news agency and has not been edited by the ap7am team.)