CLL_Art1790 - Taxpublishers.in

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The Tax Publishers Companies Act, 2013--NFRA NFRA Registration Demystified : From Procedure to Professionalism Pragya Lalwani In today's evolving corporate landscape, the auditor's role has evolved from a passive checker to an active guardian of trust. The increasing frequency of corporate failures and governance lapses has propelled the auditing profession into the limelight--not as an after thought, but as a central pillar of financial integrity. In this context, the National Financial Reporting Authority (NFRA) was not merely introduced as a regulator, but as an institutional reform. 1. The Origin and Role of NFRA The NFRA was constituted under section 132 of the Companies Act, 2013, but it gained significant prominence after the Infrastructure Leasing and Financial Services (IL&FS) crisis, an event that severely impacted the trust in India's audit eco-system. The crisis underscored the limitations of self-regulation within the profession, revealing that internal checks and balances were no longer sufficient to ensure accountability. NFRA was created not to replace the existing regulatory framework but to strengthen it through independent oversight. Its core mission is to enhance the quality of auditing by introducing a regime focused on transparency, accountability, and systematic review. Unlike other bodies that may operate from the sidelines, the NFRA is at the heart of India's audit regulation, working to raise standards and create a culture of trust in the auditing profession. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Companies Act, 2013--NFRA

NFRA Registration Demystified : From Procedure to Professionalism

Pragya Lalwani

In today's evolving corporate landscape, the auditor's role has evolved from a passive checker to an active guardian of trust. The increasing frequency of corporate failures and governance lapses has propelled the auditing profession into the limelight--not as an after thought, but as a central pillar of financial integrity. In this context, the National Financial Reporting Authority (NFRA) was not merely introduced as a regulator, but as an institutional reform.

1. The Origin and Role of NFRA

The NFRA was constituted under section 132 of the Companies Act, 2013, but it gained significant prominence after the Infrastructure Leasing and Financial Services (IL&FS) crisis, an event that severely impacted the trust in India's audit eco-system. The crisis underscored the limitations of self-regulation within the profession, revealing that internal checks and balances were no longer sufficient to ensure accountability. NFRA was created not to replace the existing regulatory framework but to strengthen it through independent oversight.

Its core mission is to enhance the quality of auditing by introducing a regime focused on transparency, accountability, and systematic review. Unlike other bodies that may operate from the sidelines, the NFRA is at the heart of India's audit regulation, working to raise standards and create a culture of trust in the auditing profession.