CA Durgesh Kabra
Ministry of Corporate Affairs has announced appropriate sections to give effect to NFRA by way of notification on 24th of October, 2018.
Below are some points and disapproving features that you need to know about NFRA:
1. 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.
2. NFRA have the power to investigate, either suo moto 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 commence or continue any proceedings in such matters of delinquency or misconduct where the National Financial Reporting Authority has initiated an investigation.
*So, ICAI cannot interfere or restrict where NFRA has issued proceedings*
3. NFRA have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit, in respect of the following matters, namely:-
4. In case of professional or other misconduct is proved, NFRA have the power to impose penalty of:-
5. NFRA has the power of debarring the member or the firm from engaging himself or itself from practice as member of the Institute of Chartered Accountant of India.
(Author can be reached at [email protected])