News: National Financial Reporting Authority is planning to increase the number of audit firms it inspects annually.
About National Financial Reporting Authority (NFRA):
- Established in 2018.
- Legal Basis: Under Section 132 (1) of the Companies Act, 2013.
- Purpose: Enhance corporate financial reporting quality in India.
- Composition: Chairperson and up to 15 part-time and full-time members.
- Key Functions: Recommend and enforce accounting and auditing standards.
- Audit: Conducted by the Comptroller and Auditor-General of India.
- Powers: Investigate misconduct by chartered accountants and firms.
- Authority: Possesses civil court-like powers.
- Headquarters: Located in New Delhi.
- Jurisdiction: Covers listed companies, large unlisted public companies, and other entities referred by the Central Government for public interest investigations.