NATIONAL FINANCIAL REPORTING AUTHORITY (NFRA)

May 30, 2024

NATIONAL FINANCIAL REPORTING AUTHORITY (NFRA)

What Is NFRA?

• The National Financial Reporting Authority (NFRA) is an independent regulator overseeing the auditing profession and Indian Accounting Standards.

• It was established under the Companies Act 2013 and began operations in October 2018.

Responsibilities:

• Recommending accounting and auditing policies and standards in India.

• Investigating auditors and audit firms.

• Imposing sanctions, such as monetary penalties and banning auditors from practice for up to 10 years.

Scope of Authority:

• Governs auditors of companies listed on any stock exchange, both in India and abroad.

• Oversees unlisted public companies above certain thresholds and other specified companies.

Regulatory Powers:

• Monitors accounting and auditing professionals of the companies within its jurisdiction.

• Companies must disclose information about their auditors to the NFRA through form NFRA-1.

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