NFRA chair says financial reporting rests on five lines of defence
In short
NFRA Chairperson Nitin Gupta said financial reporting is not only the auditor’s job. The Taxscan summary says five lines of defence matter, and audit can help but cannot replace due diligence.
This matters because company management, lenders and regulators all share responsibility. The report does not say whether this led to any new action or rule.
What the reporting says
NFRA Chairperson Nitin Gupta said financial reporting responsibility rests with five lines of defence, not auditors alone, in a Taxscan summary of his remarks. The report says management, lenders, regulators and others all play a role, and that audit can assist but cannot replace due diligence. The immediate implication is a broader compliance burden, while the source does not specify any new rule or enforcement action.
Why it matters
NFRA Chairperson Nitin Gupta was reported to have said that financial reporting responsibility sits across five lines of defence, not with auditors alone. The summary says management, lenders and regulators all have a role, and that audit can support but not substitute due diligence. The reporting does not state any enforcement step, new circular, or specific company affected.