Setting the Scene India’s retail inflation has been on a steady upward trajectory through 2026. After dipping to multi-year lows in late 2025, Consumer Price Index (CPI) inflation has risen for several consecutive months, from around 2.7% in January to 4.45% by July 2026, with food inflation running even higher at over 5.5%. Rural India, where food and fuel account for a larger share of…
Materiality is one of the most fundamental, yet highly judgment-driven, concepts in financial reporting and auditing. While accounting and auditing standards provide a framework, applying materiality requires professional judgment, contextual understanding, and practical experience. For finance teams preparing financial statements, as well as auditors reviewing them, materiality plays a critical role in influencing recognition, measurement, presentation, disclosures, and the overall audit approach. 1. Understanding Materiality…
In most audits and limited reviews, the Management Representation Letter (MRL) is signed at the concluding stage, typically after the financial statements have been finalised and the audit work is substantially completed. Due to this timing, it is often perceived as a routine document required merely to formally close the audit. In reality, the MRL is a formal written confirmation from management acknowledging its responsibility…
In today’s rapidly evolving technological landscape, artificial intelligence (AI) is reshaping financial reporting and auditing in profound ways. While AI significantly enhances efficiency, accuracy, and analytical depth, it also introduces new layers of complexity and risk that can affect the credibility of financial information. Amid these changes, auditors play a critical role in ensuring that financial reports remain reliable, transparent, and compliant with regulatory standards,…
