How is NFRA different from ICAI?
While ICAI is a statutory body for regulating the profession of chartered accountancy in the country and is under the administrative control over the ministry of corporate affairs, NFRA was set up under the Companies Act to recommend accounting and auditing policies and standards to government and to enforce compliance …
What is the power of NFRA?
Powers of the NFRA The NFRA shall have the following powers: To investigate the matters of professional or other misconduct committed by a prescribed class of CA firms or CAs. No other authority can initiate or continue proceedings where the NFRA has initiated an investigation.
What is NFRA in practical auditing?
National Financial Reporting Authority (NFRA) is an independent regulator to oversee the auditing profession and accounting standards in India under the Companies Act 2013.
Are auditors and CA same?
Chartered accountants holding practising certificates may also become Registered Auditors, who are able to perform statutory financial audits in accordance with the Companies Act, No. Chartered Accountants can also register as company secretaries.
Is Nfra applicable to private company?
As such only those Electricity Generating companies which are covered under Companies Act, will come under domain of NFRA as per Rule 3(1)(c). Filing of NFRA-1 is not applicable to companies if they have filed ADT-1 at the time appointment of Auditor.
What is the full form of Nfra?
The National Financial Reporting Authority (NFRA) was constituted on 01st October,2018 by the Government of India under Sub Section (1) of section 132 of the Companies Act, 2013.
Who has to file Nfra?
NFRA 2 form is to be filed by the Auditor which has signed any audit report pertaining to any auditee falling under Rule 3(1) (a) to 3 (1) (e) of NFRA Rules 2018, during the reporting Page 5 period.
What is NFRA and explain NFRA?
NFRA provisions under the Companies Act of 2013 Section 132 of the Companies Act, 2013 authorises the Central Government to establish the National Financial Reporting Agency (NFRA) to oversee accounting and auditing problems.
Is NFRA applicable to private company?
Can CA become an auditor?
As per the Companies Act, 2013, only a practising Chartered Accountant (CA) is eligible to be appointed as the statutory auditor in a company. Further, a limited liability partnership (LLP) also can be appointed as the auditor of a firm in its own name.
Can CA be auditor?
A CA/CA Firm can act as the internal auditor of a company & statutory auditor of its employees PF Fund under the new Companies Act (2013).
Who can file Nfra form?
auditor
Who Should File Form NFRA-1. This particular form needs to be filed by the auditor of Indian body corporates or foreign companies who fall under rule number 3(3) of the NFRA. The auditor also needs to be functioning as on the date of the commencement of the rules in the company.
What is the difference between NFRA and ICAI?
Advisory role: NFRA advises the Central Government whereas ICAI will advise NFRA in creating high-quality accounting standards, etc. Who is the ultimate authority? Considering the wide scope and powers vested with NFRA, the powers entrusted with ICAI are diluted.
What is NFRA (National Financial Reporting Authority)?
What is NFRA? National Financial Reporting Authority (NFRA) is a single independent authority proposed in Companies Act, 2013 for the establishment and enforcement of accounting and auditing standards and oversight of the work of auditors. Why the Need for NFRA?
How many posts are there in the NFRA?
This created one post of Chairperson and three posts of Full Time Members against a provision of fifteen members in law and one Secretary for NFRA. The establishment of NFRA is as per section 132 it’s been five years since the enactment of the Companies Act, 2013 and only a few sections have yet to be notified.
How is the CA fraternity coping with the changes to ICAI?
The report quoted the ICAI as saying “… the CA fraternity is in the process of coping with new changes such as penalties, rotation, restricted services, Internal Financial Controls over Financial Reporting and other aspects imposed by the Companies Act.