NFRA to be setup To check Auditors role

New Delhi Mar 2: The union cabinet chaired by Prime Minister Modi had taken a crucial decision yesterday.The Cabinet had approved the creation of a National Financial Reporting Authority (NFRA) Union Finance Minister Arun Jaitley has addressed the media.

FM has said that "Section 132 of the Companies Act provides for its constitution of the Authority.The authority will apply to only certain companies that will be notified in the rules. These will include all listed companies and large unlisted companies. The size of these unlisted companies will be decided in the rules."

He has also said that "The Institute of Chartered Accountants of India will continue its audit procedures for smaller companies.The NFRA will investigate matters of misconduct by chartered accountants."