Skip to content

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

Under the Companies Act, 2013, which authority is empowered to investigate, either suo motu or on a reference from the Central Government, professional or other misconduct by a member or firm of chartered accountants for prescribed classes of bodies corporate?

The National Financial Reporting Authority has the power under Section 132(4)(a) to investigate professional or other misconduct by chartered accountant members or firms, either suo motu or on a Central Government reference, for prescribed classes of bodies corporate and in the prescribed manner.

  1. ANational Financial Reporting AuthorityCorrect
  2. BRegistrar of Companies
  3. CSecurities and Exchange Board of India
  4. DComptroller and Auditor-General of India

Explanation

Section 132(4)(a) gives the National Financial Reporting Authority the power to investigate misconduct of chartered accountant members or firms, either suo motu or on a reference by the Central Government, for the prescribed class of bodies corporate. The CAG audits the accounts of NFRA itself and does not investigate auditors' misconduct under this provision.

Did you get it right without looking?

One question tells you little. A timed set on National Financial Reporting Authority (NFRA) shows your real accuracy, how long you take and where you lose marks.

Practise National Financial Reporting Authority (NFRA)Free diagnostic mock

More National Financial Reporting Authority (NFRA) questions