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CMA Intermediate · Business Laws and Ethics · Internal Financial Control for Financial Reporting

A company is dissatisfied with an NFRA order imposing a penalty for misconduct under Section 132(4)(c). Where may the aggrieved person appeal?

An aggrieved person may appeal to the Appellate Tribunal, in the prescribed manner and on payment of the prescribed fee. The CAG only audits the NFRA's accounts, and neither an NFRA division nor the Institute hears appeals against its penalty or debarment orders.

  1. ABefore the Appellate Tribunal, in the prescribed manner and on payment of the prescribed feeCorrect
  2. BBefore the Comptroller and Auditor-General of India
  3. CBefore a division of the NFRA presided over by the Chairperson
  4. DBefore the Institute of Chartered Accountants of India

Explanation

Section 132(5) says any person aggrieved by an order under clause (c) of sub-section (4) may appeal to the Appellate Tribunal in the prescribed manner and on payment of the prescribed fee. The CAG only audits NFRA's accounts, and neither an NFRA division nor the Institute is an appellate forum.

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