NFRA Releases FAQs on NFRA-2 Form: Essential Information for Auditors
The National Financial Reporting Authority (NFRA) has issued a comprehensive FAQ document to clarify the contents and filing procedure for Form NFRA-2. This form covers audit reports signed between April 1, 2024, and March 31, 2025, and pertains to financial statements for the year ended March 31, 2024. The document provides crucial guidance on the e-filing process and the scope of the form.
NfraForm Nfra2Financial StatementsAuditing StandardsEfilingReal EstateSep 12, 2025
Key Queries and Clarifications
Query 1:
Is Form NFRA-2 available in an electronic format for e-filing?
Clarification:
Form NFRA-2 must be filed online. Auditors can access the e-filing portal at [https://eformnfra2.nic.in/](https://eformnfra2.nic.in/) for the electronic form.
Query 2:
Can auditors access a step-by-step instruction kit and Q&A guide for filling out Form NFRA-2?
Clarification:
NFRA-2 form must be filed online. The e-filing portal at [https://eformnfra2.nic.in/](https://eformnfra2.nic.in/) provides a step-by-step guide and necessary guidance.
Query 3:
Is there a facility to upload client-wise information using Excel or Word files for bulk filing?
Clarification:
NFRA-2 form must be filed online. The e-filing portal at [https://eformnfra2.nic.in/](https://eformnfra2.nic.in/) does not currently support bulk uploads via Excel or Word files.
Query 4:
Does the information in clauses 3 and 4 of NFRA-2 apply only to statutory audits or to special purpose (non-statutory) financial statements as well?
Clarification:
The information is required for statutory audits of financial statements by the auditor in respect of entities covered in Clause 3(1)(a) to 3(1)(e) of NFRA Rules 2018. It does not cover tax audits, limited reviews, or quarterly audits.
Query 5:
Does Clause 4 of NFRA-2 cover clients where engagements other than statutory audits under Section 143 are performed?
Clarification:
Clause 4 does not cover tax audits, limited reviews, or quarterly audits.
Query 6:
What is the Global Location Number (GLN) required in Clause 4(a)(l)(3), and is it mandatory for all Indian companies?
Clarification:
The GLN is a global code that identifies a location, similar to an electronic address. It is provided by GS1 global, a not-for-profit information standards organization. While companies registered in India can have a GLN, it is not mandatory.
Query 7:
What registration details are required for the Engagement Partner and Engagement Quality-Control Partner under Clause 4(a)(l)(7)(B) and 4(a)(l)(8)(B)?
Clarification:
The registration details of the concerned jurisdiction must be disclosed.
Query 8:
Are the requirements for confirming a modified audit report in Clause 4(a)(l)(9) and reporting on unfavorable or qualified findings in Clause 4(a)(l)(12) aligned with SA 705?
Clarification:
Clause 4(a)(l)(9) pertains to modified reports by the auditor as per SA 705. The terms 'unfavorable' or 'qualified' are as defined in paragraph 4 of CARO 2016.
Query 9:
Does the requirement in Clause 4(a)(l)(10) for fee information exclude GST?
Clarification:
The fee information does not include GST.
Query 10:
Does Clause 4(a)(l)(10) require disclosure of all kinds of services provided by the auditor?
Clarification:
The clause applies to all kinds of services provided by the auditor to the auditee, and services must be classified as specified in the clause.
Query 11:
Does the requirement in Clause 4(a)(l)(10) for fee information exclude GST?
Clarification:
The fees do not include GST.
Query 12:
What auditing standards are required to be followed as per Clause 4(b)(1)(11)?
Clarification:
Auditing standards applicable during the relevant period in the jurisdiction of the auditee entity must be stated.
Deadline and Compliance
With the filing deadline of November 30, 2025, fast approaching, the NFRA has reiterated that auditors of listed companies, large unlisted public companies, and specified entities in regulated sectors must ensure timely submission of the NFRA-2 return. This form is crucial for maintaining transparency and accountability in financial reporting and audit practices.
The NFRA's efforts to provide clear guidance through the FAQs document aim to streamline the filing process and reduce any ambiguities. Auditors are encouraged to review the document thoroughly and utilize the e-filing portal to ensure compliance with the regulations.
Boilerplate
The National Financial Reporting Authority (NFRA) is a regulatory body established under the Companies Act, 2013, to oversee the quality of financial reporting and audit practices in India. It aims to promote transparency, accountability, and integrity in financial reporting, thereby enhancing investor confidence and the overall financial ecosystem.
Frequently Asked Questions
Is Form NFRA-2 available in an electronic format for e-filing?
Yes, Form NFRA-2 must be filed online. Auditors can access the e-filing portal at https://eformnfra2.nic.in/ for the electronic form.
Does the information in clauses 3 and 4 of NFRA-2 apply only to statutory audits?
Yes, the information is required for statutory audits of financial statements by the auditor in respect of entities covered in Clause 3(1)(a) to 3(1)(e) of NFRA Rules 2018. It does not cover tax audits, limited reviews, or quarterly audits.
What is the Global Location Number (GLN) required in Clause 4(a)(l)(3)?
The GLN is a global code that identifies a location, similar to an electronic address. It is provided by GS1 global, a not-for-profit information standards organization. While companies registered in India can have a GLN, it is not mandatory.
Does Clause 4(a)(l)(10) require disclosure of all kinds of services provided by the auditor?
Yes, the clause applies to all kinds of services provided by the auditor to the auditee, and services must be classified as specified in the clause.
What auditing standards are required to be followed as per Clause 4(b)(1)(11)?
Auditing standards applicable during the relevant period in the jurisdiction of the auditee entity must be stated.
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