What is NFRA and its Draft Powers
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The process of implementation of NFRA was started in June 2015, when companies law committee was set up and submitted its report in February 2016 to the standing committee on finance.
By that time the role of the auditors came under the question of mounting NPA and banking frauds.
The real trigger point of NFRA was on July 1, 2017, when in his CA day speech, Prime Minister Narendra Modi had raised the question on the ability of the ICAI disciplinary mechanism.
"Did only 25 people make a mess? And I have heard that more than 1,400 cases are still pending for many years now.
A single case takes years to settle. Tell me my friends, is it a matter of concern or not, for such highly qualified professionals?" the PM had said.
NFRA’S Draft Powers
Power to create Accounting Standard
Separate registrations of auditors
Powerful disciplinary actions
Educational training to auditors
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