ICAI has formed a special group to interact with the Government on day-to-day basis for the formation of National Financial Reporting Authority (NFRA) Rules.
NFRA Vs ICAI:
Was Our ICAI Leadership played Proactive Role to Save Autonomy of the ICAI?
Ministry of Corporate Affairs has notified relevant sections to give effect to NFRA by way of notification on 24th of October,2018.
Below are the few points and critical aspects that you needs to know about NFRA:
- Till now ICAI used to make recommendations to the Central Government on the formulation and laying down of accounting and auditing policies and standards but, from now onwards ICAI will act as advisory to NFRA and NFRA will recommend to the Government
- NFRA have the power to investigate, either suo motu or on a reference made to it by the Central Government, for such class of bodies corporate or persons, in such manner as may be prescribed into the matters of professional or other misconduct committed by any member or firm of chartered accountants,And no other institute or body shall initiate or continue any proceedings in such matters of misconduct where the National Financial Reporting Authority has initiated an investigation.So, ICAI cannot interfere where NFRA has issued proceedings
- NFRA have the same powers as are vested in a civil court
- And the most critical one comes here, PENALTY
Where professional or other misconduct is proved:
- NFRA may impose one lakh rupees – five times of the fees received, in case of individuals
- Ten lakh rupees -Ten times of the fees received, in case of firms
- Debarring the member or the firm from Practice 6 months – 10 years
The information contained in this document prepared by Rajput Jain & Associates (hereinafter referred to as RJA) is furnished to the recipient, on his/ her specific request and for information purpose only. In no way, this document should be treated as a marketing material or efforts to solicit a client. The sole purpose of this document is to furnish factual information about RJA’s profile.
While we have made every attempt to ensure that the information contained in this document is true, RJA, its partners and/or any of its employees does not give any warranty, express or implied, including the warranty of opinions expressed for a particular purpose, or assume any liability or responsibility for the accuracy, completeness, or usefulness of any information available from this document.
Information in this document is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent services.
Before making any decision or taking any action, you should consult a RJA professional. The recipient of this document specifically agrees and acknowledges that all proprietary rights in the information available on this document for all times shall remain the property of RJA. Reproduction, redistribution and transmission of any information obtained from this document is strictly prohibited. RJA shall not be liable for any claims or losses of any nature, arising directly or indirectly from use of the data or material or any information in this document.
Use of this document is confirmation that you understand and accept these terms. The document provides general information about RJA, its people and its service offerings. Should you desire any further information about us, please feel free to revert at email@example.com