National Financial Reporting Authority

 

Context:

  • The Appointments Committee of the Cabinet (ACC) has approved the appointment of former finance secretary Ajay Bhushan Pandey as the chairperson of the National Financial Reporting Authority (NFRA).

 

NFRA

 

  • National Financial Reporting Authority (NFRA) is a statutory body, established in 2018 under the Companies Act 2013.
  • It is an independent regulatory body, which oversees the auditing profession, accounting standards, and policies in India.

 

Origin

 

  • National Financial Reporting Authority (NFRA) was first proposed by the Standing Committee on Finance in its 21st report, in the wake of the 2009 Satyam scandal. In 2018, the proposal to establish NFRA as an independent regulator was approved by the Union Cabinet.

Powers and duties of NFRA

 

  • To recommend accounting and auditing standards in India.
  • To undertake investigations, and impose sanctions against auditors and audit firms for any violations. The sanctions can be either in the form of penalties or debarring from practice for up to 10 years.

Source: THE HINDU.

 

 

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