9911796707
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 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 disciplin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary 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 for penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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* (other than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Summoning Powers* - Investi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gation 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. X X X X Extracts X X X X X X X X Extracts X X X X ..... s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
