SEBI is considering making it mandatory for listed companies to report on digital assurance of financial statements in order to enhance transparency, improve disclosure standards, and strengthen investor protection and trust in the market. This move is in line with the Technical Guide on Digital Assurance issued by the Auditing and Assurance Standards Board and Digital Accounting and Assurance Board of ICAI, which encourages the use of technology in audit processes.
While the technical guide focuses on leveraging digital tools for audit procedures, it does not require auditors to provide a separate report on digital assurance. However, SEBI recently consulted with members of its Primary Market Advisory Committee to discuss the possibility of introducing a separate reporting requirement for digital assurance of financial statements by listed entities.
Regulation 33 of the listing regulations outlines the requirements for submitting financial results, including the format and timeline for submission. SEBI’s proposal aims to provide greater clarity and insight into the digital assurance processes adopted by listed companies, ultimately strengthening investor confidence in the market.
