Bringing accountants to account

Abstract

Self-regulation does not work in a clubby world. External regulation, as in the US and UK, is beneficial for investors and lenders The Companies Act 2013 provides for setting up a National Financial Reporting Authority (NFRA). The recent report of Parliament’s standing committee on finance on the Companies (Amendment) Bill 2016 has reopened what appeared to be the settled position on auditor regulation. NFRA has a larger remit than NACAS (National Advisory Committee on Accounting Standards), which it is meant to replace. NACAS only recommends accounting standards. NFRA will set accounting and auditing standards, monitor and enforce compliance with the standards, and oversee the accounting profession’s record of ensuring compliance. It will take away significant regulatory powers from the Institute of Chartered Accountants of India (ICAI). Read more at: https://www.thehindubusinessline.com/opinion/bringing-accountants-to-account/article9436576.ece