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Question

Refer to the following information to answer the next 4 questions (Q 19 to Q 21) A body constituted under the provisions of the Companies Act, 2013, established as an independent authority to regulate the auditing profession and the Indian Accounting Standards. The body is responsible for making recommendations regarding accounting and auditing standards. It also oversees the Quality of Service provided by the accounting and audit professions. It is expected that the body’s functioning would result in improved domestic and foreign investments, improved economic growth, assistance in the development of the audit profession and supporting the globalization of business through compliance with international practices. The aim of the Central Government in this regard appears to be: • Setting up of a separate and independent regulatory body to assist in the framing and enforcement of legislation relating to accounting & auditing and • Improving investor and public confidence in the financial reporting of an entity. The need for this authority arose as a response to various corporate scams in recent times. The body has the responsibilities to make recommendations on the foundation and laying down of accounting and auditing policies and standards, Monitor and enforce the compliance of the accounting standards and auditing standards, to oversee the quality of service of the professionals (such as auditors) and suggest measures required for improvement in the quality of service.  

Which body has these roles and responsibilities mentioned in the above para?

A ICAI Correct Answer Incorrect Answer
B NFRA Correct Answer Incorrect Answer
C MCA Correct Answer Incorrect Answer
D ICSI Correct Answer Incorrect Answer
E IASB Correct Answer Incorrect Answer

Solution

The National Financial Reporting Authority (NFRA) is a regulatory body in India established under Section 132 of the Companies Act, 2013. Its primary objectives are to assist in the formulation and enforcement of accounting and auditing standards and to enhance investor and public confidence in financial reporting. NFRA was set up in response to various corporate scams to strengthen regulatory oversight.

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