National Financial Reporting Authority submits first report since constituted

News:The National Financial Reporting Authority(NFRA) has issued its first audit report of IL&FS Financial Services Limited for the year 2017-18.

Facts:

About NFRA:

• The National Financial Reporting Authority(NFRA) has been constituted in 2018 by the Government of India under section 132 of the Companies Act,2013.
• The need for establishing NFRA was felt in the wake of accounting scams and to establish an independent regulator for enforcement of auditing standards and ensuring the quality of audits.
• Further,due to the establishment of NFRA,India is also now eligible for the membership of International Forum of Independent Audit Regulators (IFIAR).

Functions of NFRA:

• 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.

Additional information:

About IFIAR:

• International Forum of Independent Audit Regulators(IFIAR) is a global member organization established in 2006 at Paris.
• It was established by independent audit regulators from 18 jurisdictions, IFIAR has now grown to 55 Members around the world
• The mission of IFIAR is to serve the public interest including investors, by enhancing audit oversight globally.

Companies Act,2013:

• The Companies Act 2013 is an Act of the Parliament of India on Indian company law.Company means a company incorporated under this Act or under any previous Company Law.
• The law regulates incorporation of a company, responsibilities of a company, directors and dissolution of a company.