NFRA lists 948 firms for not filing returns on audit work
August 24, 2026
The National Financial Reporting Authority (NFRA) lists 948 mostly small and mid-sized audit firms that failed to file mandatory NFRA-2 returns for FY25, alongside 41 incomplete filings.
The National Financial Reporting Authority (NFRA) has listed 948 audit firms that have not filed mandatory NFRA-2 annual returns for the reporting period FY25. The list largely comprises smaller and mid-sized audit firms rather than the large audit firms.
The provisional list takes into account filings made up to August 15, 2026. NFRA said that the firms who have already submitted their returns or completed their filings can inform the regulator.
The annual return is required under Rule 5 of the NFRA Rules, 2018, and the original deadline for filing the NFRA-2 return for FY25 was November 30, 2025. However, NFRA said the filing window continues to remain open to provide additional time to audit firms.
The NFRA-2 return provides the regulator with information on audit firms and their audit engagements, including details of companies audited, audit and non-audit fees, partners and employees, network affiliations, disciplinary proceedings and quality-control policies. This information helps NFRA monitor audit firms in the country and assess compliance with auditing and reporting standards.
NFRA’s non-filer lists have changed significantly as audit firms subsequently file their returns. For FY23, 856 firms were on the list as of March 20, 2025. For FY24, the number fell from 905 on March 10 to 785 by March 20. For FY25, it declined from 1,314 on April 30 to 948 by August 15. The FY25 list covers both listed and unlisted companies — unlike the FY23 list which covered only listed companies.
Big Four Compliance
Besides the 948 firms that haven’t yet filed the return, NFRA has separately identified 41 audit firms that filed incomplete NFRA-2 returns for FY25.
Crucially, the latest disclosure does not include domestic affiliates of Big Four firms such as Deloitte, EY, PwC and KPMG among the non-filers. Unlike many smaller firms, the large firms are already subject to annual inspections by NFRA.
NFRA’s repeated release and updating of these lists also indicates that the regulator is continuing to use NFRA-2 filings as an important compliance monitoring tool.
[The Financial Express]
