National Financial Reporting Authority

10 May National Financial Reporting Authority

Posted at 10 May 2021 in Current Affairs by 0 Comments

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(GS PAPER-3, INSTITUTIONS

Source- Economic Times)

Context

National financial reporting authority has prepared a provisional database of companies and auditors

Highlights

Establishment of this database involves following critical steps.
Identification and verification of the primary data source
reconciliation of data such as company identification number which is dynamic from different sources
In this regard the national financial reporting authority has been engaging with the corporate data management division of the Ministry of Corporate Affairs and three recognized stock exchange in India
Provisional database of companies and their auditors as of 31st March 2019 has been compiled by the NFRA which have been published on the website of NFRA

About National Financial Reporting Authority

The national financial reporting authority is a regulatory body set up under section 132 of the Companies Act 2013 to oversee compliance with accounting and auditing standard by the companies that can be described as Public Interest entities
This group includes all listed companies and large and listed companies
The discipline to constituted the national financial reporting authority was taken after the role of auditors And The Institute of Chartered Accountants of India came under the scanner for alleged lapses in various corporate scams including that at the Punjab National Bank
Its account is monitored by the Comptroller and Auditor General of India
its headquarter is in New Delhi

Composition

It consists of a chairperson who shall be a person of eminence and having expertise in accountancy auditing appointed by the central government and such other members not exceeding 15
The chairperson and members who are in full time employment with National financial reporting authority shall not be associated with any audit form during the course of their appointment and two years after ceasing to hold such an appointment

-Khyati Khare