Govt keen to set up NFRA, to regulate Audit quality
PrintListen to this Article
The Centre is clearly inclined to go ahead and set up NFRA going by the latest amendment moved to the company law on Thursday last, say economy watchers.
As part of the 43 amendments introduced to the Companies (amendment) Bill 2016, the Centre has come up with a new provision that specifies that all appeals to NFRA will lie with the National Company Law Appellate Tribunal (NCLAT).
This is a clear pointer to the fact that the sanctity of NFRA under the company law is being preserved and it could be a reality in days to come, they said.
The Companies (amendment) Bill 2016 was passed on Thursday by the Lok Sabha and is awaiting passage in the Upper House.
Amarjit Chopra, Chairman of National Advisory Committee on Accounting Standards and former CA Institute President, told BusinessLine that “looking at this amendment, it appears that the government may constitute NFRA in times to come”.
Another former President of the CA Institute on condition of anonymity said this (latest government move) only can mean they are going ahead with NFRA. “If they were not to constitute it (NFRA), why should they bring this amendment?”, he asked.
Dissenting voices
The CA Institute has been opposed to the setting up of NFRA.
The Veerappa Moily-headed Standing Committee on Finance had also recommended that it is not in favour of establishing a separate regulator — independent of audit profession — for auditors. Technically, the government need not accept a recommendation of a Standing Committee.
Under the current company law, enacted in 2013, the NFRA has been envisaged as an independent quasi-judicial body that would regulate audit quality and protect public interest. The Centre is yet to operationalise the NFRA.
In its report on the Companies (amendment) Bill 2016, which was tabled in the Lok Sabha in December last year, the Standing Committee on Finance had said that the existing mechanism on oversight of corporate audit under the ICAI Act should be streamlined and strengthened “without needlessly adding to regulatory levels”. #casansaar (Source - The Hindu Business)
Category : ICAI | Comments : 0 | Hits : 544
The CA Institute has proceeded and notified its revised exam dates (announced on March 19) for the intermediate course examination and final examination despite a pending Supreme Court hearing slated for April 29 on postponement plea filed by some CA Students. An ICAI notification—gazetted on April 25 —showed that the intermediate course exams will be held on May 3, 5 & 9 (Group I) and May 11, 15 and 17 (Group II). The final exams are scheduled for May 2, 4 and 8 (Group ...
The Institute of Chartered Accountants of India (ICAI) has found gross negligence by edtech firm Byju's auditors, ICAI president Ranjeet Kumar Agarwal said on Wednesday. "Our inspection has found gross negligence on accounting practices by individual auditors of Byju's and accordingly we have recommended to the Financial Reporting Review Board (FRRB) to take punitive actions on auditors concerned," Agarwal told news agency PTI. Agarwal said, "The FRRB wil...
The Enforcement Directorate (ED) raided premises linked to Delhi Chief Minister Arvind Kejriwal’s personal secretary Bibhav Kumar, and Aam Aadmi Party (AAP) Rajya Sabha MP, Past President of ICAI Sh.ND Gupta in connection with a money laundering probe related to the Jal Board case. The central probe agency had last month arrested Jagdish Kumar Arora, the former chief engineer of the Delhi Jal Board. The probe agency claims that Arora awarded a contract worth Rs 38 crore to NKG Infrastru...
A bench of justice Bharav D Karia had observed that the activity of a CA includes that of accounting, auditing, refereeing, receivers, arbitrators and special commissioners as prescribed by the ICAI to be carried out on-premises and at places of managing partner may determine The Gujarat high court has ruled that a Chartered Accountancy (CA) firm should be classified as a professional establishment rather than a shop, commercial or retail entity and as a result, its employees are deemed ineli...
Notice Sent to Kumar Vishwas by Advocate (CA) Dr. Suneel Maggo for his Derogatory Remarks against Professionals (Chartered Accountants and Company Secretaries). We had discussed the matter with Advocate Suneel Maggo and the same has been uploaded on the youtube but on the pressure of Kumar Vishwas, Video has been removed 2 times. In his notice to Kumar Vishwas, He asked for Sorry to the Professional else Next Defemation Notice to Kumar Vishwas for his Derogatory Remarks against Chartered A...
Comments