Skip to content

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

Which of the following is a function of the National Financial Reporting Authority under section 132(2) of the Companies Act, 2013?

The Authority makes recommendations to the Central Government on formulating and laying down accounting and auditing policies and standards for companies or their auditors. It also monitors compliance and oversees quality of service. It does not approve accounts, appoint auditors or register charges.

  1. ARecommending to the Central Government accounting and auditing policies and standards for adoption by companies or their auditorsCorrect
  2. BApproving the annual financial statements of every listed company at its AGM
  3. CAppointing the statutory auditors of private companies
  4. DRegistering the charges created by companies

Explanation

Section 132(2)(a) requires the Authority to make recommendations to the Central Government on formulating and laying down accounting and auditing policies and standards. The other options are functions of shareholders or the Registrar, not the Authority.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Corporate Accounting shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Corporate AccountingFree diagnostic mock

More Introduction to Corporate Accounting questions