Context:
National Financial Reporting Authority is planning to increase the number of audit firms it inspects annually.
About National Financial Reporting Authority:
- An audit regulator.
- Genesis: Constituted in 2018 by Government of India under Section 132 (1) of Companies Act, 2013.
- Objective – To continuously improve the quality of all corporate financial reporting in India.
- Composition –
- Consists of a chairperson (appointed by Central Government) and
- Other members not exceeding 15 consisting of part-time and full-time members.
- Functions and Duties –
- Recommend accounting and auditing policies and standards to be adopted by companies for approval by Central Government.
- Monitor and enforce compliance with accounting standards and auditing standards.
- Accounts Audit by – Comptroller and Auditor-General of India.
- Major Powers –
- To investigate, either suo moto or on a reference made to it by the Central Government, into the matters of professional or other misconduct committed by any member or firm of chartered accountants registered under the Chartered Accountants Act, 1949.
- It has the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit.
- Headquarters – New Delhi
- Jurisdictions –
- The investigation of Chartered Accountants and their firms would extend to listed companies and large unlisted public companies.
- Central Government can also refer such other entities for investigation where public interest would be involved.
Source: Economic Times
Previous Year Question
Consider the following:
1. Hotels and restaurants
2. Motor transport undertakings
3. Newspaper establishments
4. Private medical institutions
The employees of which of the above can have the ‘Social Security’ coverage under Employees’ State Insurance Scheme?
[UPSC Civil Service Exam – 2012 Prelims]
(a) 1, 2 and 3 only
(b) 4 only
(c) 1, 3 and 4 only
(d) 1, 2, 3 and 4
Answer: (d)
