NEW DELHI: The government said on Saturday it was committed to further strengthening the functioning of the National Financial Reporting Authority (NFRA). The NFRA is an independent regulator of the auditing profession under the Department of Corporate Affairs.
Speaking at an event organized by NFRA as part of the Azadi Ka Amrit Mahotsav (AKAM) celebrations, Corporate Affairs Ministry Secretary Rajesh Verma said, “We have to see what is left to to strengthen the NFRA to enable it to carry out its functions. effectively” as well as strengthen public interest protection mandates.
“The government is continuously focused on strengthening the NFRA and in doing so we are also considering the recommendations of the Company Law Committee regarding the financial and operational autonomy of the NFRA,” he added.
He also traced the evolution of NFRA, which came into being in October 2018.
Further, he stated that the NFRA is required to protect the public interest and the interests of investors, creditors and other persons associated with companies by setting high quality accounting and auditing standards and by exercising effective oversight of accounting functions performed by companies and auditing functions performed by auditors. .
Meanwhile, NFRA Chairman Ajay Bhushan Pandey stressed the need to harness technology and data to bring efficiency to the independent regulator. According to him, more than 6,800 companies fall under NFRA’s jurisdiction, which include listed and unlisted companies.
MoS Corporate Affairs Rao Inderjit Singh also spoke about the importance of self-regulation. Also, the winners of an Indian level quiz organized by NFRA in December-January 2022 were congratulated by the Union Minister.
The event saw the participation of experts in the regulation of auditing and accounting standards from the national and international scene. An expert from the Certified Public Accountants and the Auditing Supervisory Council of Japan also shared his views on audit quality and financial reporting.
As part of the AKAM celebrations, NFRA had organized a two-day webinar in October 2021 to promote understanding and awareness of auditing and accounting standards among stakeholders and citizens of the country.