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CMA Intermediate · Corporate Accounting and Auditing · National Financial Reporting Authority (NFRA)

A full-time member of the NFRA ceased to hold office on 31 March 2027. Applying the provisos to section 132(3), until what date must he stay away from association with any audit firm, including related consultancy firms?

He must stay away until 31 March 2029. The third proviso to section 132(3) bars full-time members from being associated with any audit firm, including related consultancy firms, during the appointment and for two years after ceasing to hold it. Two years from 31 March 2027 ends on 31 March 2029.

  1. A31 March 2027, as the restriction ends on ceasing office
  2. B30 September 2027, being six months after ceasing office
  3. C31 March 2028, being one year after ceasing office
  4. D31 March 2029, being two years after ceasing officeCorrect

Explanation

The third proviso to section 132(3) bars full-time members from association with any audit firm, including related consultancy firms, during the appointment and for two years after ceasing to hold it. Two years from 31 March 2027 gives 31 March 2029. The one-year and six-month options understate the period.

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