Digitisation is the need of the hour as everything from gold to money is being transferred in digital form. Valuable documents are also being converted into virtual assets, and data being wealth also makes it vulnerable to online leaks. This is why the government had introduced the Digilocker mechanism in 2015, and now the National Financial Reporting Authority (NFRA) wants the same for auditors.
CBSE Term 2 results 2022; learn how to check on digilocker
Recent scams prompt action
The regulatory body has recently spotted that documents have been manipulated at major listed Indian firms. A major auditing firm such as KPMG has also been fined by an American regulatory body over the tampering. Following these revelations, the NFRA has called for a digital locker which will prevent files from being manipulated.
Modern crimes call for tech savvy measures
Along with a $1 million penalty on KPMG, its engagement partner Sagar Pravin Lakhani was also slapped with a $75,000 fine. Blank papers signed off by the engagement team were later replaced by documents containing once audit reports were issued. All along, KPMG knew that its members were updating information on files through its software, without changing the sign-off date.
These dubious practices involving large Indian corporations have forced NFRA to act and look for technology which can curb such unethical practices during financial audits.
