The new Company law will create a new quasi judicial Body called NFRA who will look after the quality of financial reporting .
Basically they will supervise the way Audit is being done by any type of auditors . ( Statutory auditor & Cost Auditor )
Satyam scam and few other corporate scam has highlighted the role of the auditor and the way they keep relation with Management of a company to present financial reporting .
NFRA will look after the quality of audit , compliance by auditor and the reporting they do , They will have the power to suspend the Auditor . Till now misconduct by statutory auditor was checked by the disciplinary committee of ICAI .
The tenure of partner of audit firm will be maximum five years in one Company and audit firm need to be changed every 10 years . The objective is to expose any thing wrong which might be covered up .
Basically they will supervise the way Audit is being done by any type of auditors . ( Statutory auditor & Cost Auditor )
Satyam scam and few other corporate scam has highlighted the role of the auditor and the way they keep relation with Management of a company to present financial reporting .
NFRA will look after the quality of audit , compliance by auditor and the reporting they do , They will have the power to suspend the Auditor . Till now misconduct by statutory auditor was checked by the disciplinary committee of ICAI .
The tenure of partner of audit firm will be maximum five years in one Company and audit firm need to be changed every 10 years . The objective is to expose any thing wrong which might be covered up .
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