TMI BlogNFRA RULES- a new phase of auditing regulationX X X X Extracts X X X X X X X X Extracts X X X X ..... NFRA RULES- a new phase of auditing regulation - By: - Sandeep Rawat - Accounting - Auditing - Dated:- 28-11-2018 - - *NFRA RULES* *A. Applicability:*_ # *NFRA will monitor BIG COMPANIES AS FOLLOWS*: a. *ALL Listed Companies*/ Body Corporates; OR b. *Unlisted Companies with Paid up Capital or Loans = INR 500 crores* OR *Turnover = INR 1000 crores*; OR c. *ALL Banks/Insurance/Elec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tricity Companies*; OR d. Certain specific *foreign Subsidiaries/Associates of Indian Companies*. *Note* - For auditor of these Companies, *ICAI do not have any investigation role*. !!! *COMPANY/AUDITOR ONCE GOVERNED BY NFRA WILL BE COVERED BY NFRA for 3 MORE YEARS EVEN IF LIMITS ARE REDUCED/ LISTED STATUS CHANGES.* !!! # *For Other Companies*, ICAI will have the power to initiate discip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... linary proceedings. *B. Powers and Responsibilities of NFRA*_ # Notifying *Accounting Standards* *Auditing Standards* *Firstly, ICAI Recommend* ------ *Then, NFRA will check* ------ *Then, Forward to CG for approval* # *Monitoring Compliance of AS* For *AS* compliance, *NFRA MAY REVIEW FS of such Companies* and ask for further Information, seek additional information, initiate f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or penal proceeding if any wrongdoing. # *Monitoring Compliance of SA* For SA Compliance, *NFRA MAY REVIEW AUDITOR WORKING PAPERS*, check Sufficiency of Quality System within the Audit Firm, *Supervise or Test the audit*. *Note Means for Big Companies, Peer Reviewing Powers are now with NFRA and not with ICAI._* *C. Filings with NFRA*_ # *Notice to the authority by Body Corporate* ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (other than Company) regarding Auditor *Form NFRA 1* # *AUDITOR of Big Companies required to file ANNUAL RETURN to NFRA till 30th April every year.* *D. Powers under Section 132 of the Companies Act, 2013 *_ ## *Monitoring and Regulating Powers* recommend CG w.r.t. AS and SAs and checking proper compliance of the same, oversee quality of audit firms. ## *Investigating and Summo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning Powers* Investigation of audit firms, summoning and enforcing attendance, Inspection of records. ## *Penalizing Powers* Individual Auditors (INR 1 Lakh to 5 times of Fees), Firm of Auditors (INR 5 Lakhs to 10 times of Fees). ## *Debarring Powers* Debarring from Practice as a member of ICAI for a period of 6 months to 10 years. - - Scholarly articles for knowledge sharing autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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