National Financial Reporting Authority under Companies Bill-2012
NFRA under Companies Bill-2012 Important for all
Published on: Mar 3, 2016
Transcripts - National Financial Reporting Authority under Companies Bill-2012
NATIONAL FINANCIAL REPORTING AUTHORITY (NFRA)-Section-132S.No. Particulars Descriptions1 Constitution by Central Government2 Functions Recommendations to the CG on the formulation and laying down of accounting and auditing policies and standards for adoption by companies or their auditors. Monitor and enforce the compliance with accounting standards and auditing standards. Oversee the quality of service of the professions associated with ensuring compliance and suggest measures required for improvement. Perform such other functions relating to above.3 Head Office New Delhi4 Auditing of books by Comptroller and Auditor-General of India (CAG)5 Combination CHAIRMAN: a person of eminence and having expertise in accountancy, auditing, finance or law. MEMBERS: (Maximum 15) Not Associated Chairman & Members of NFRA shall not be associated with any audit firm6 (including related consultancy firms) during the course of their appointment and two years after ceasing to hold such appointment.7 Powers General Powers ● Investigate, either suo moto or on a reference made to it by the CG for bodies corporate or persons into the matters of (Notwithstanding anything professional or other misconduct committed CA or CA Firm. contained in any other law ● Same powers as are vested in a civil court, while trying a for the time being in force) suit. Penalty powers (where professional or other misconduct is proved) (No other institute or ● Impose penalty body shall initiate or continue any proceedings Individuals Firms in such matters of Minimum 1,00,000 10,00,000 misconduct where the NFRA has initiated an Maximum 5 Times of fees received 10 Times of fees received investigation under this ● Debar from practice as member of the ICAI for: section) Individuals Firms Minimum 6 Months 6 Months Maximum 10 Years 10 Years8 Appeal against the order of NFRA Appellate Authority NFRA consisting of : ➢ Chairperson ➢ Members (Maximum 2)9 Advising to CG on Central Government may prescribe the standards of accounting or standards of accounting or any addendum thereto, as recommended by the ICAI in consultation any addendum there with and after examination of the recommendations made by the (U/s 133) NFRA .