National Financial Reporting Authority

[NFRA] – Section 132

By:
CA Kamal Garg
[B. Com (H), FCA, DISA (ICAI)]
Insolvency Professional
 Constitution of NFRA

CG may by Functions of NFRA – S. 132(2)

notification
constitute NFRA to Recommend CG on formulation
provide for matters of AS and SA
relating to accounting Monitor and enforce
and auditing compliance of AS and SA
standards under this Oversee quality of services
Act – Section 132(1); rendered by professionals in
context of above and suggest
improvement measures

Other prescribed functions

 Composition of NFRA – Section 132(3)
[enforced w.e.f. 21 March 2018]
Chairperson = 1
• person of eminence and having expertise in accountancy, auditing,
finance or law = minimum 25 years of experience
• to be appointed by CG
Other Members =< 15
• consisting of part-time and full-time members as may be prescribed
• Full time member to have minimum 20 years of experience (rest
same as above for Chairperson)
Common points for Chairperson and Members
• T & C as prescribed by CG
• Shall make a declaration to CG about their independence
• Those who are in full time employment with NFRA shall not
associate with any audit firm (including related consultancy firms)
during the course of their appointment and two years after ceasing
to hold such appointment
Secretary and Employees of NFRA – Section 132(11)
[enforced w.e.f. 21 March, 2018]

The CG may appoint:

a secretary; and such other employees

as it may consider necessary for the efficient performance of

functions by the NFRA under this Act; and

the terms and conditions of service of the secretary and

employees shall be such as may be prescribed