Company Directory - National Financial Reporting Authority
Company Details - National Financial Reporting Authority
National Financial Reporting Authority
India
The National Financial Reporting Authority (NFRA) is a regulatory body established in India to oversee the audit industry. It is responsible for regulating chartered accountants and ensuring audit quality by enforcing compliance with auditing standards and investigating potential lapses in the profession.
CCI Score
CCI Score: National Financial Reporting Authority
25.33
-0.03%
Latest Event
Big Five auditors object to NFRA's functioning
Leading audit firms have raised concerns about the National Financial Reporting Authority's (NFRA's) dual role in carrying out investigations and disciplinary proceedings, arguing that this lack of separation undermines neutrality and fair regulatory practices.
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DISSENTER
National Financial Reporting Authority is currently rated as a Dissenter.
Latest Events
- MAR232025
Leading audit firms have raised concerns about the National Financial Reporting Authority's (NFRA's) dual role in carrying out investigations and disciplinary proceedings, arguing that this lack of separation undermines neutrality and fair regulatory practices.
-40
Public and Political Behavior
March 23
NFRA's handling of both investigation and disciplinary actions in a single body raises serious questions about its neutrality and accountability. This blending of responsibilities compromises public trust and may allow politically influenced decisions, thereby indirectly supporting authoritarian practices.
-30
Business Practices and Ethical Responsibility
March 23
Critics emphasize that the NFRA's current operational model, by merging oversight with internal disciplinary actions, fails to adhere to ethical regulatory practices as mandated by the Companies Act. This lack of clear separation undermines trust in the system, potentially enabling practices that indirectly support authoritarian tendencies.
- FEB132025
The Delhi High Court's recent ruling reaffirms the National Financial Reporting Authority's power to discipline audit firms, enhancing accountability and safeguarding ethical financial practices.
+70
Public and Political Behavior
March 23
The affirmation of NFRA's disciplinary authority by the High Court supports strong regulatory oversight and reinforces public trust in transparent, accountable governance. This action counters potential authoritarian influences by ensuring audit practices are held to high standards, which is positive from an anti-fascist perspective.
What the recent High Court ruling means for NFRA, the auditors’ regulator
+70
Business Practices and Ethical Responsibility
March 23
NFRA's maintained power to discipline audit firms enforces ethical practices in the financial reporting sector. This disciplinary measure enhances overall accountability and contributes to a robust regulatory environment that upholds business integrity against practices that may undermine democratic institutions.
What the recent High Court ruling means for NFRA, the auditors’ regulator
- FEB082025
The Delhi High Court upheld NFRA's powers while raising concerns about the internal division of functions. The court's criticism of NFRA's lack of a clear separation between audit review and disciplinary actions signals risks of regulatory capture and potential misuse of authority that could inadvertently support authoritarian practices.
-10
Public and Political Behavior
March 23
NFRA's retrospective enforcement powers, although constitutionally upheld, have been questioned by the Delhi High Court due to a lack of clear separation between audit review and disciplinary functions. This raises concerns about potential misuse of regulatory authority and the risk of aligning with authoritarian tendencies.
Delhi HC backs NFRA's powers but questions it on 'division of functions'
-20
Regulatory Capture
March 23
The Court's decision to quash certain NFRA actions on the grounds of procedural neutrality indicates a risk of regulatory capture. The lack of distinct separation of duties within NFRA could create an environment ripe for the concentration of unchecked power, which is a hallmark of authoritarian practices.
Delhi HC backs NFRA's powers but questions it on 'division of functions'
- NOV122024
NFRA approved 40 new audit standards by aligning several with global norms despite objections from the Institute of Chartered Accountants of India (ICAI). This move reinforces regulatory independence and strengthens audit accountability in India, potentially curbing undue industry influence.
+40
Public and Political Behavior
March 23
Under the Public and Political Behavior category, NFRA’s decision demonstrates a commitment to regulatory independence by moving forward with audit standard reforms despite strong objections from the ICAI. This action challenges established industry power structures and aligns with democratic oversight, contributing positively to public accountability.
+35
Business Practices and Ethical Responsibility
March 23
In the Business Practices and Ethical Responsibility category, the overhaul of audit standards represents an effort to enforce higher accountability and transparency within the audit industry. Aligning with international standards is intended to curb practices that allow self-interest to override public interest, thereby supporting ethical business practices.
- SEP192024
In a detailed on‐site review conducted on September 19, 2024, the National Financial Reporting Authority flagged significant deficiencies in the audit practices of two PwC-affiliated firms. This action underscores NFRA's commitment to upholding transparency and ethical accountability within the auditing industry, thereby reinforcing democratic oversight and reducing risks of corporate misconduct that can indirectly bolster authoritarian practices.
+80
Public and Political Behavior
March 23
NFRA's public disclosure of audit deficiencies through a rigorous on-site review demonstrates strong commitment to transparency and regulatory accountability. Such actions help fortify democratic processes by ensuring that corporate practices, especially in critical sectors like auditing, are held to high ethical standards.
+70
Business Practices and Ethical Responsibility
March 23
By actively exposing deficiencies in audit processes, NFRA is ensuring that firms adhere to ethical practices and robust internal controls. This regulatory oversight is vital in preventing corporate malpractices that can contribute to systemic abuses of power and, indirectly, to the rise of authoritarian structures.
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