• The National Financial Reporting Authority is creating a database of companies and auditors. As a first step of establishing the database, NFRA is to identify and verify the primary data sources.
• This is essential because certain data such as Company Identification Number is different from different sources. NFRA is to collect data from the Corporate Data Management division that operates under the Ministry of Corporate Affairs and also from other three stock exchanges in India.
National Financial Reporting Authority
• The National Financial Reporting Authority is a regulatory body set up in 2018 under Section 132 of Companies Act.
• It functions under the administrative control of the Ministry of Corporate Affairs.
• According to the act, the authority should have a chairperson and maximum of fifteen members. They are appointed by the Central Government.
• The NFRA recommends auditing and accounting policies and standards to be adopted by companies for approval from the Union Government.
• It monitors compliance with auditing standards and accounting standards.
• The NFRA has powers to investigate misconduct committed by the members of ICAI. ICAI is Institute of Charted Accountants of India.
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