Part of: Prelims and GS-III-Economy; GS-II- Governance
In news–
NFRA was constituted in 2018 under section 132 (1) of the Companies Act, 2013.
It is an independent regulator for enforcement of auditing standards and ensuring the quality of audits so as to enhance investor and public confidence in financial disclosures of companies.
It can probe listed companies and those unlisted public companies having paid-up capital of no less than Rs 500 crore or annual turnover of no less than Rs 1,000 crore. (while ICAI retains jurisdiction of small listed companies)
It can even investigate professional misconduct committed by members of the Institute of Chartered Accountants of India (ICAI) for prescribed class of body corporate or persons.
