LION'S EYE OVER CHARTERED ACCOUNTANTS


 NFRA (NATIONAL FINANCIAL REPORTING AUTHORITY)



NFRA shall have jurisdiction over bodies corporate and persons for matter of professional and other misconduct committed, by any member or firm of CAs registered under the Chartered Accountants Act 1949


Motive of Central Govt behind the constitute of this Authority

 i).To setup a separate and independent authority to established high quality standard of accounting and auditing and exercise effective oversight of accounting and auditing function.
ii).Protect the public interest and the interest if investors, creditors, and other associated with the companies.
iii).The quality of services provided by Chartered Accountant.

 APPLICABILITY OF THIS SECTION 132 (“the Act”)




DUTIES OF AUTHORITY

 i)Monitor and enforce compliance with accounting standards and audition standards.
ii)To supervise the quality of service of the professionals.
iii)Recommend accounting standards and auditing standards for approval by the Central Government. 
iv) Maintain the details of particulars of auditors appointed in the companies and body corporate specified in rule 3.

v)  To ensure the compliance with such standards and suggest measures for improvements in the quality of service.



ANNUAL RETURN



Every auditors as specified in rule 3 shall file a return with the authority on or before  30th April every year in such form as may be specified by the Central Government.
RECOMMENDING ACCOUNTING STANDARDS AND AUDITING STANDARDS
                   
The authority shall receive recommendations from ICAI (the Institute of Chartered Accountants of India) on proposals for new accounting standards or auditing standards of amendment to existing accounting standards or auditing standards,the  authority may seek additional information from ICAI and shall consider the recommendation and additional information in such manner as it deems fit before making recommendation to the Central Government for approval.

 POWER OF THE AUTHORITY

 i) May review the financial statements of the company or body corporate, if required direct such company, or body corporate, or its auditor by a written notice.
ii) Shall publish its findings relating to non- compliance on its website and in such other manner as it consider fit.
iii) It may require personal presence of officer of company or body corporate and  its auditor for seeking  information and explanation in connection with review financial statements.

iv) May send a separate report containing proprietary or confidential information to the Central Government for its information.

 POWER TO INVESTIGATION

 i) Authority has received any reference from Central Government or suo motu investigation into any matter of professional or other misconduct.

MISCONDUCT PROVED


i)Rs 1 lakh to 5 times of the fees in case of individual.
ii)Rs 5 lakh to 10 times of the fees in case of firm.
iii)Debarring member or firm for 6 months to 10 years.

 *NFRA 1 To be  filed by 31st July 2019.


                                                        Author 
                                            CA Pooja Shukla FCA
                                                 RYPS & ASSOCIATES LLP
                                             Website:www.ryps.in
                                                   Contact No: 9810505547


































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