Auditing is a critical aspect of corporate governance. The monumental corporate frauds of Enron and Satyam, alongside other incidents have created a public distrust in auditing practices, which led to the need for a strong system to detect and prevent such fraud. The United States and India established the independent audit monitoring  institutions, such as Public Company Accounting Oversight Board and National Financial Reporting Authority to supervise the auditing profession after these corporate frauds took place. The creation of National Financial Reporting Authority serves to maintain audit quality while supervising the audit profession to strengthen corporate governance frameworks. Financial oversight watchdogs are often called auditors, who now report to the watchdog of watchdogs—National Financial Reporting Authority. This study evaluates the role of an auditor and independent audit oversight authority in improving the quality of audit, financial reporting, and corporate governance. This chapter traces the developments in the field of corporate governance alongside regulatory changes in the field of auditing, which collectively led to the establishment of National Financial Reporting Authority in India. The regulatory changes in accounting and auditing after the establishment of National Financial Regulatory Authority have not received adequate academic examination through documented research studies. Further investigation is required regarding the National Financial Reporting Authority and its effects on auditing practices and corporate governance, according to this chapter.