National Financial Reporting Authority (NFRA)

National Financial Reporting Authority (NFRA) is an independent regulator set up to overseas the auditing profession and accounting standard in India under the Companies Act 2013.

1. National Financial Reporting Authority (NFRA) Presented by:- Mr. Enjoy Debbarma M.Com, 4th Semester Department of Commerce Tripura University

2. Index 1. Concept of NFRA 2. Genesis of NFRA 3. Epert Recommendation 4. Supreme Court Observation 5. Conclusion

3. Concept of NFRA National Financial Reporting Authority (NFRA) is an independent regulator set up to oversee the auditing profession and accounting standards in India under the Companies Act 2013.

4. Genesis of NFRA The Standing Committee on Finance proposed the concept of the National Financing Reporting Authority (NFRA) for the first time in its 21 st report. The Union Cabinet approved the proposal for its establishment on 1 March 2018. It came into existence in October 2018.

5. Expert committee recommendation The COE recommends that NFRA could be further strengthened and therefore, the rules which are presently being formulated, must provide powers to NFRA to publish audit inspection results, subject to necessary checks and balances. This will strengthen NFRA further and will provide an effective tool of deterrence for better compliance by the auditors of public companies with the applicable laws and professional standards .

6. Supreme court observation It is important for the Government, regulators and the ICAI to ensure that such wrong impression is not permitted and all entities other than Chartered Accountants in practice and CA firms should be actually prohibited directly or indirectly from providing auditing and assurance services, as these are required to be regulated in the public intrest.

7. conclusion The implementation of NFRA is a critical step toward establishing a transparent accounting, auditing and financial reporting system. Unlike NACAS, NFRA has been given the authority to oversee accounting standards and auditing policies, as well as the authority to examine specific situations involving professional misconduct by chartered accountants in corporate organisations. As a result, it plays a critical role in financial reporting for successful corporate governance.

8. Thank You