Q6. Consider the following statements.
1. National Financial Reporting Authority (NFRA) is an independent regulator under Companies Act, 2013.
2. NFRA will be 15 members body, consisting of Chairperson, three full-time Members and one Secretary.
Which of the above statement(s) is/are correct?
Q6. Consider the following statements.
1. National Financial Reporting Authority (NFRA) is an independent regulator under Companies Act, 2013.
2. NFRA will be 15 members body, consisting of Chairperson, three full-time Members and one Secretary.
Which of the above statement(s) is/are correct?
The correct option is C (c) Both 1 and 2
National Financial Reporting Authority (NFRA) is a body proposed in Companies Act 2013 for the establishment and enforcement of accounting and auditing standards and oversight of the work of auditors. It would be an overarching watchdog for auditing profession and once set up, the current powers of the ICAI to act against erring chartered accountants will be vested with the new regulator. The NFRA will have powers to debar an erring auditor or auditing firm for up to ten years besides slapping heavy penalties.
(c) Both 1 and 2
National Financial Reporting Authority (NFRA) is a body proposed in Companies Act 2013 for the establishment and enforcement of accounting and auditing standards and oversight of the work of auditors. It would be an overarching watchdog for auditing profession and once set up, the current powers of the ICAI to act against erring chartered accountants will be vested with the new regulator. The NFRA will have powers to debar an erring auditor or auditing firm for up to ten years besides slapping heavy penalties.
