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The Union Cabinet approved the foundation of the National Financial Reporting Authority on 1st March 2018. It is an independent body regulating audit and accounting standards under Section 132 of “Companies Act, 2013”.
If you want to know more about what NFRA is and its objectives and powers, keep reading.
The prime objectives of the National Financial Reporting Authority of India are as follows:
The Central Government will appoint a chairperson and 15 members who will have the below qualifications:
Followings are certain powers of the National Financial Reporting Authority -
Inspect any accounting firm’s documents, registers, or books.
Summon individuals and scrutinise them under oath.
Penalise any professionals of a CA firm up to their disqualification.
If an individual or a firm is subjected to the following penalties in case of any misconduct:
The constitution of the National Financial Reporting Authority makes India an eligible member of the International Forum of Independent Audit Regulators. However, it does not intervene in the advisory role of the Institute of Chartered Accountants in India.
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