With respect to the National Financial Reporting Authority (NFRA), which of the following statements is/are correct?

It is a statutory body constituted under Section 132 of the Companies Act, 2013.

It was established as an independent authority to regulate the auditing profession and accounting standards in India.

It consists of a chairperson who will be appointed by the NITI Aayog and a maximum of 5 members.

Select the correct option from the codes given below:

Question

It is a statutory body constituted under Section 132 of the Companies Act, 2013. Correct: National Financial Reporting Authority (NFRA) is a statutory body constituted under Section 132 of the Companies Act, 2013.
It was established as an independent authority to regulate the auditing profession and accounting standards in India. Correct: It was established as an independent authority to regulate the auditing profession and accounting standards in India.
It consists of a chairperson who will be appointed by the NITI Aayog and a maximum of 5 members. Incorrect: The Companies Act requires the NFRA to have a chairperson who will be appointed by the Central Government and a maximum of 15 members.

GKToday Admin · Accepted Answer

Only two

It is a statutory body constituted under Section 132 of the Companies Act, 2013. Correct: National Financial Reporting Authority (NFRA) is a statutory body constituted under Section 132 of the Companies Act, 2013.
It was established as an independent authority to regulate the auditing profession and accounting standards in India. Correct: It was established as an independent authority to regulate the auditing profession and accounting standards in India.
It consists of a chairperson who will be appointed by the NITI Aayog and a maximum of 5 members. Incorrect: The Companies Act requires the NFRA to have a chairperson who will be appointed by the Central Government and a maximum of 15 members.

Current Affairs