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Auditors of 1,000 large listed companies in India will have to file transparency reports with the National Financial Reporting Authority (NFRA) in the specified format, from the current financial year
- It will improve the credibility of auditors and boost investor confidence in them.
About National Financial Reporting Authority (NFRA)
- It was constituted in 2018 by the Government of India under Sub Section (1) of section 132 of the Companies Act, 2013.
- Objectives: Â Â Â To continuously improve the quality of all corporate financial reporting in India.
- Functions and Duties: Recommend accounting and auditing policies and standards to be adopted by companies for approval by the Central Government;
- Monitor and enforce compliance with accounting standards and auditing standards;
- Oversee the quality of service of the professions associated with ensuring compliance with such standards and suggest measures for improvement in the quality of service;
- Perform such other functions and duties as may be necessary or incidental to the aforesaid functions and duties.
Source: FE
