Top audit firms concerned after hefty penalty on BSR & Associates

The NFRA imposed a ₹10 crore fine and banned BSR & Associates LLP partners for audit lapses in Coffee Day Enterprises. The firm had depended on subsidiary auditors, which the regulator criticized, emphasizing significant overlooked investments. This hefty fine has concerned audit firms, affecting future engagements. Experts suggest that the principal auditor should not be solely accountable if subsidiary auditors comply with standards. This event occurs amid increased regulatory scrutiny and efforts to reshape India's auditing profession.