What is the need of NFRA?

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What is the need of NFRA?

The relevance of NFRA in the context of the Companies Act 2013: The objective of NFRA is to regulate audit quality and protect the public interest. These, in any case, are also the main objectives of ICAI which strives to be a world-class regulator.

What is NFRA form?

MCA vide Notification dated dated November 13, 2018 notified the National Financial Reporting Authority Rules, 2018 (NFRA Rules, 2018) notified by the Ministry vide Notification dated November 13, 2018, effective from November 13, 2018 to establish an independent regulator to strengthen the audit profession and to …

What is the role of national financial reporting authority?

According to Section 132 of Companies Act 2013, “NFRA is responsible for recommending accounting and auditing policies and standards in the country, undertaking investigations, and imposing sanctions against defaulting auditors and audit firms in the form of monetary penalties and debarment from practice for up to 10 …

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Who has to file NFRA?

Auditor
NFRA 2 form is to be filed by the Auditor which has signed any audit report pertaining to any auditee falling under Rule 3(1) (a) to 3 (1) (e) of NFRA Rules 2018, during the reporting Page 5 period.

Is ICAI under NFRA?

While ICAI is a statutory body for regulating the profession of chartered accountancy in the country and is under the administrative control over the ministry of corporate affairs, NFRA was set up under the Companies Act to recommend accounting and auditing policies and standards to government and to enforce compliance …

Is NFRA statutory?

What is the National Financial Reporting Authority (NFRA)?

The National Financial Reporting Authority (NFRA) was constituted on 01st October,2018 by the Government of India under Sub Section (1) of section 132 of the Companies Act, 2013. Recommend accounting and auditing policies and standards to be adopted by companies for approval by the Central Government;

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What is NFRA in IAS exam?

The National Financial Reporting Authority (NFRA) is administered by the Ministry of Corporate Affairs under the Government of India to regulate the auditing standards in the country. UPSC Aspirants should be aware of important topics related to Finance and Economics in order to score more marks in the IAS Exam.

Is every body corporate in India required to file with NFRA?

Only body corporate formed in India and governed under this Rule 3 (1) and foreign Subsidiary company or Associate company as per Rule 3 (1) are required to file form with NFRA. Here also confusion arises as to reporting by the LLPs, as the rule says “every body corporate formed in India” which again includes LLPs.

What is the difference between NACAS and NFRA?

NFRA has been constituted as a quasi-judicial body with larger remit than NACAS which only advised on accounting policies and standards. As per the Rule 3 (1) of NFRA Rules, 2018, NFRA will have jurisdiction over the following class of companies or bodies corporate, namely:

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