National Financial Reporting Authority Constitutes Advisory Committee on Audit Quality, Assurance, and Technology
Distilled Policy Brief
- The committee comprises distinguished experts representing diverse stakeholder groups including professionals, CFOs, audit committees, independent directors, technology experts, regulators, and industry representatives.
🎯 Prelims High-Yield Examination Points
National Financial Reporting Authority (NFRA) is established under Section 132 of the Companies Act, 2013, with powers to constitute advisory committees under Rules 15 and 16 of NFRA Rules 2018.
⚖️ Mains Analytical & Syllabus Linkages
Analyze the role of regulatory bodies like NFRA in enhancing corporate transparency, auditing standards, and financial reporting quality in India.
🎯 UPSC Prelims Practice Drill
With reference to the National Financial Reporting Authority (NFRA) and its recent initiatives, consider the following statements regarding the Advisory Committee on Audit Quality, Assurance, and Technology: 1. The constitution of such committees and study groups by NFRA derives authority from the National Financial Reporting Authority Rules, 2018. 2. The newly formed committee exclusively comprises government bureaucrats and chartered accountants appointed by the Ministry of Corporate Affairs. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Statement 1 is correct because the NFRA is authorized under Rules 15 and 16 of the National Financial Reporting Authority Rules, 2018, to constitute committees, study groups, and task forces for the effective discharge of its functions. Statement 2 is incorrect as the committee comprises distinguished experts representing diverse stakeholder groups including professionals, CFOs, audit committees, independent directors, technology experts, regulators, and industry representatives, rather than exclusively government bureaucrats.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.