Audit committees failing to challenge management on asset impairment, NFRA warns

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NFRA report flags weak auditor-committee communication on accounting estimates and goodwill testing, highlighting gaps in impairment assessment, fair value and value-in-use calculations, and disclosure practices. Are audit committees effectively scrutinising management assumptions? Are cash flow projections and discount rates being properly challenged? Are impairment recognition and disclosures sufficiently transparent to protect investors? Here is what India’s audit watchdog said: