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CS Executive · Corporate Accounting and Financial Management · Introduction to Corporate Accounting

Under the Companies Act, 2013, which body is empowered to make recommendations to the Central Government on the formulation and laying down of accounting and auditing policies and standards for adoption by companies?

The National Financial Reporting Authority makes recommendations to the Central Government on formulating and laying down accounting and auditing policies and standards for adoption by companies or their auditors, as provided in Section 132(2)(a) of the Companies Act, 2013.

  1. ANational Financial Reporting AuthorityCorrect
  2. BRegistrar of Companies
  3. CComptroller and Auditor-General of India
  4. DAppellate Tribunal

Explanation

Section 132(2)(a) provides that the National Financial Reporting Authority makes recommendations to the Central Government on accounting and auditing policies and standards for companies or their auditors. The Registrar of Companies registers and administers filings but does not recommend standards. The CAG audits the accounts of the NFRA itself.

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