National Financial Reporting Authority (NFRA)

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    In News

    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:    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