NFRA - Audit-Practice Toolkits: Audit Strategy Memorandum – Sample Document

On November 3, 2025, the National Financial Reporting Authority (NFRA) released its Audit-Practice Toolkits: Audit Strategy Memorandum – Sample Document.

Just 1st para of Sample Engagement Letter is Sufficient to guess intention of NFRA and expectations from the Auditors.

"We, M/s Dharmraj & Co., Chartered Accountants, have been appointed as statutory auditors of ABC Limited (ABC) under Section 139 of the Companies Act, 2013 (CA 2013) by the members in the Annual General Meeting held on __."

*M/s Dharmraj & Co

(The Name Says It All: Dharmraj Knows Everything - the Past, Present, and Future - Not Just What Happened, But What Was Planned and Never Did.)

Importantly, it is not an official policy, standard, or recommendation from NFRA's Executive Body or the Government. Instead, it functions as a guiding toolkit for educational and training purposes, aimed at raising awareness of auditing and accounting standards while bolstering overall audit quality.

The content is hypothetical, focusing on the audit of ABC Limited (a fictional automobile company) for its standalone financial statements (SFS) and consolidated financial statements (CFS) for the year ended 31 March 20XY. It emphasizes a risk-based audit approach aligned with Standards on Auditing (SAs) and other applicable standards.

The memorandum outlines a detailed audit strategy and planning framework, tailored to ABC Limited's business, financials, and risks. Key highlights include:

1. Business and Industry Overview

2. Financial Performance Insights

3. Internal Controls and IT Environment

4. Key Accounting and Auditing Focus Areas

5. Group Audit Dynamics

6. Materiality Benchmarks

The document also offers practical guidance for effective auditing:

1. Planning and Strategy: Hold team/client meetings for alignment; maintain skepticism and ethics; update plans dynamically (SA 300).

2. Risk and Testing: Detailed SA 315 assessments on assertions; SA 330 programs with control/substantive tests (e.g., statistical sampling).

3. Specialist Engagement: Use actuaries (benefits), valuers (intangibles/acquisitions), tax experts (Pillar 2/transfer pricing) etc.

4. Group Execution: Confirm auditor independence; issue risk-focused instructions; conduct visits and reviews for Ind AS/SA compliance, allocate materiality by risk/size.

5. Materiality and Reporting: Monitor thresholds ongoing; communicate findings to governance (SA 260/265); cover CARO, fraud (Section 143(12), ICFR, and SEBI requirements.

This educational memorandum illustrates robust audit planning for a complex auto entity like ABC Limited, stressing risk integration across financials, operations, and regulations. It promotes quality through specialist input, dynamic updates, and standards compliance, ultimately boosting transparency and confidence. As a training tool, it encourages auditors to customize its risk-based framework for real audits. Thanks.

Document Link : 

  https://cdnbbsr.s3waas.gov.in/s3e2ad76f2326fbc6b56a45a56c59fafdb/uploads/2025/11/202511031770937445.pdf

Source : https://nfra.gov.in/nfra-audit-strategy-memorandum-sample-document-03-11-25/

Compliance Calendar for the month of November - 25

 Dear Friends,

I am pleased to share the Compliance Calendar for the month of November 2025. It lists all the key deadlines for laws and rules this month, including GST, Income Tax, ROC, PF/ESI, and other important duties. Keep in mind, this info is based on the latest updates as of today. To stay fully compliant, always double-check with official government and tax websites for any new notices, rules, or changes.

This month, the government gave a nice surprise: they extended the Tax Audit deadline to 10th November 2025 and ITR filing to 10th December 2025.

Now, professionals are split into two groups. One group says the extension isn't enough - it should go until 31st December 2025. The other group says no extension was needed at all.

Basically, two main teams handle audits and returns: first, the company's accounting staff; second, the external auditors. Many companies and auditors end up spending 50% more time because of repeated work. Accounting teams and auditors often treat Statutory, Tax, GST, and Transfer Pricing (TP) audits as separate jobs, doing the same things over again without need.

In most cases, the same auditor handles Statutory, Tax, and GST Audits (and TP Audit if required), and the same firm prepares the ITR. While getting data ready for Statutory Audit, if you also think about what Tax/GST/TP Audit and ITR need, plan smartly, and prepare all data together from the beginning. Use simple checklists to spot the same data needed for Statutory, Tax, GST, and TP audits, so you don't repeat work by combining steps early. Most audits can finish on time this way. So, with good planning, prep, and follow-through, audits and filings can be done by the deadlines, saving time and effort while earning fees through smart work, not extra repetition. Thanks.

Compliance Calendar for the month of November – 2025

By: Sukhvinder Singh Bhatia

Compliances: TDS/Income Tax

07-Nov-25	​​Due date for deposit of Tax deducted/collected for the month of October, 2025. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of challan
07-Nov-25	​Uploading of declarations received in Form 27C from the buyer in the month of October, 2025

 

10-Nov-25

Tax Audit Report under Section 44AB: Extended due date for furnishing the tax audit report for the previous year 2024-25 (AY 2025-26) for assessees requiring audit of accounts.

 

14-Nov-25	​Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of September, 2025
14-Nov-25	​Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of September, 2025
14-Nov-25	​Due date for issue of TDS Certificate for tax deducted under section 194M in the month of September, 2025
14-Nov-25	​Due date for issue of TDS Certificate for tax deducted under section 194S (by specified person) in the month of September, 2025

 

15-Nov-25	​Quarterly TDS certificate (in respect of tax deducted for payments other than salary) for the quarter ending September 30, 2025
15-Nov-25	​Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of October, 2025 has been paid without the production of a challan
15-Nov-25	​Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes been modified after registering in the system for the month of October, 2025
15-Nov-25	​Due date for furnishing statement by a recognised association in respect of transactions in which client codes been modified after registering in the system for the month of October, 2025

 

30-Nov-25	​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA in the month of October, 2025
30-Nov-25	​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB in the month of October, 2025
30-Nov-25	​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M in the month of October, 2025
30-Nov-25	​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194S (by specified person) in the month of October, 2025
30-Nov-25	​Return of income for the assessment year 2025-26 in the case of an assessee if he/it is required to submit a report under section 92E pertaining to international or specified domestic transaction(s)
30-Nov-25	​Report in Form No. 3CEAA by a constituent entity of an international group for the accounting year 2024-25

 

Compliances: GST (Goods and Service Tax)

10-Nov-25	GSTR-7: TDS deductors under GST for October’25.
10-Nov-25	GSTR-8: TCS collectors (e-commerce operators) for October’25.
11-Nov-25	GSTR-1 (Monthly): For October’25 (turnover > ₹5 crore or not opted for QRMP scheme)
13-Nov-25	GSTR-5 by NRIs for October’25.
13-Nov-25	GSTR-6: Input Service Distributors for October'25.
13-Nov-25	IFF (Optional) for opted for QRMP scheme.
20-Nov-25	GSTR-3B (Monthly): For October’25 (turnover > ₹5 crore or not opted for QRMP scheme).
20-Nov-25	GSTR-5A: OIDAR service providers for October’25.

 

Compliances: PF/ESI  

15-Nov-25

PF & ESI Contribution: Payment and return filing for October’25.

 

Company Law/ROC/MCA 

29-Nov-25	MGT-7 / MGT-7A - Filing of Annual Return (within 60 days of the AGM, assuming a Sep 30, 2025 AGM date)
29-Nov-25	PAS-6 (Reconciliation of Share Capital Audit Report for the half-year ended September 30, 2025)

Sources:

https://incometaxindia.gov.in/

https://www.gst.gov.in/

https://incometaxindia.gov.in/pages/acts/income-tax-act.aspx

Transforming EPFO : Rules 2025

During 2025 the Employees' Provident Fund Organisation (EPFO) has introduced several key changes to EPF rules throughout the year. These updates focus on simplifying processes, enhancing accessibility, liberalizing withdrawals, and improving digital services for over 73 million members.

Below is a point-by-point summary of the major changes:

☼ Simplified PF Account Transfers Without Employer Approval : Online PF transfer requests (via revised Form 13) no longer require approval from the previous or current employer in cases where the member's name, date of birth, and gender match across accounts, provided the UAN is Aadhaar-linked.

☼ Service Profile Updates Without Employer Approval : Corrections to EPF details (e.g., name, date of birth, marital status, employment history) via JD can now be completed online through the EPFO portal if the UAN is Aadhaar-linked. Minor changes (e.g., name or gender) allow self-approval by members, while complex ones still need employer/EPFO nod but with reduced steps.

☼ Updated Guidelines for Higher Pension Benefits : Clarifications issued for EPS members opting for higher pensions based on actual wages (beyond the statutory cap).

☼ Revised EDLI Scheme Rules with Minimum Life Cover: The Employees' Deposit-Linked Insurance scheme now guarantees a minimum benefit of ₹5,00,000 (up from variable amounts). Service continuity is extended to include breaks of up to 60 days between jobs, and coverage applies to all EPF contributors without separate enrollment.

☼ Liberalized Partial Withdrawal Rules : 13 complex provisions merged into three: Essential Needs (illness, education, marriage), Housing Needs, and Special Circumstances (e.g., natural calamities, unemployment). Auto-settlement expanded to housing, education, and marriage claims (previously only medical).

☼ 100% Withdrawal of Eligible PF Balance Allowed : Members can withdraw up to 100% of eligible balance for approved purposes, subject to maintaining a 25% minimum balance in the account at all times.

☼ Extended Periods for Premature Final Settlement and Pension Withdrawals : Unemployment-based full withdrawals extended from 2 months to 12 months of non-contribution; retirement-based from 2 months to 36 months.

Upcoming IT Upgrades: ATM/UPI Withdrawals and Potential Equity Investments.

☼ EPFO 3.0 rollout for faster claims; ATM cards for direct PF withdrawals post-settlement; potential direct equity investments beyond ETFs for higher returns. Wage contribution cap may be hiked or removed.

These changes aim to digitize and liberalize EPF services, but members should link Aadhaar to UAN and update KYC for full benefits. Thanks.

For more detail refer following link:

https://economictimes.indiatimes.com/news/new-updates/epfo-new-rules-explained-check-whats-changing-and-how-it-will-affect-your-provident-fund-pension/articleshow/124574221.cms