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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Governance Influencers

Tarini Infra Ltd's board wants an independent regulator to oversee the quality of audits of large companies and to enforce auditing standards, with power to investigate professional misconduct of auditors of such companies. Which body is established under the Companies Act, 2013 for this purpose?

The National Financial Reporting Authority is the body under the Companies Act, 2013 that oversees audit quality, enforces auditing and accounting standards, and investigates auditor misconduct for specified companies. SFIO deals with fraud investigation, ROC with filings, and IBBI with insolvency regulation.

  1. ANational Financial Reporting AuthorityCorrect
  2. BSerious Fraud Investigation Office
  3. CRegistrar of Companies
  4. DInsolvency and Bankruptcy Board of India

Explanation

NFRA is constituted under the Companies Act to recommend accounting and auditing standards, monitor and enforce compliance, oversee audit quality and investigate auditor misconduct for specified companies. SFIO investigates corporate frauds, the ROC handles registration and filings, and IBBI regulates insolvency professionals and processes.

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