Skip to content

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

Which of the following correctly describes the executive body of the NFRA under section 132 of the Companies Act, 2013?

The executive body comprises the Chairperson and full-time Members. It discharges the NFRA's functions under sub-section (2) other than clause (a), and sub-section (4), which covers investigation and penalties. It is not made up of part-time members or institute representatives.

  1. AIt consists of all part-time members and the Secretary, and handles only clause (a) recommendations
  2. BIt consists of the Chairperson and full-time Members, for efficient discharge of functions under sub-section (2) other than clause (a), and sub-section (4)Correct
  3. CIt consists of the Chairperson and a nominee of the CAG, and handles appeals under sub-section (5)
  4. DIt consists of the Chairperson and one representative each of ICAI, ICMAI and ICSI, for all functions

Explanation

Section 132(3B) provides an executive body of the Chairperson and full-time Members for functions under sub-section (2) other than clause (a) (recommendations on standards), and sub-section (4) (investigation and penalties). Option A reverses the roles; appeals go to the Appellate Tribunal, not the executive body.

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