Under Section 28A of the Chartered Accountants Act,

Solution

Section 28A of the Chartered Accountants Act, 1949 inserted by the Chartered Accountants (Amendment) Act, 2006 empowers the Central Government to constitute the Quality Review Board (QRB). The Board consists of a Chairperson and ten other members appointed by the Central Government in consultation with ICAI. Under Section 28B, the primary functions of the QRB are: (i) to review the quality of services provided by the members of ICAI including audit services; (ii) to make recommendations to the Council of ICAI for improving the quality of services; and (iii) to lay down the procedure for conducting quality reviews. The QRB represents the regulatory oversight arm of the Central Government over ICAI it ensures that CAs performing audits meet prescribed quality standards, particularly in matters of public interest. Its recommendations are required to be considered by the Council, which must include a report on action taken on QRB recommendations in its annual report. The QRB is distinct from the National Financial Reporting Authority (NFRA), which was constituted under the Companies Act, 2013 with independent powers to oversee auditing standards.