<h1 class="ql-align-center">National Financial Reporting Authority (NFRA)</h1> <h2>Context:</h2> <ul><li>Recently,&nbsp;the National Financial Reporting Authority(NFRA ) compiled a provisional database of companies and their auditors.</li></ul> <h2>About:</h2> <ul><li>NFRA was constituted in 2018 under section 132 (1) of the Companies Act, 2013.</li></ul> <ul><li>It is an independent regulator for enforcement of auditing standards and ensuring the quality of audits so as to enhance investor and public confidence in financial disclosures of companies.</li></ul> <ul><li>The Companies Act requires the NFRA to have a chairperson who will be appointed by the Central Government and a maximum of 15 members.</li></ul> <h2>Jurisdiction of NFRA:</h2> <ul><li>The NFRA is tasked to investigate audit of&nbsp;Listed Companies and Unlisted companies&nbsp;with net worth not less than Rs 500 crore or paid-up capital of not less than Rs 500 crore or annual turnover not less than Rs 1,000 crore as on March 31 of immediately preceding financial year, and companies having securities listed outside India.&nbsp;</li></ul> <ul><li>The Centre further has the power to refer the entities for investigation where public interest would be involved, the rest are regulated by ICAI.</li></ul> <ul><li>The inherent regulatory role of&nbsp;ICAI&nbsp;as provided for in the Chartered&nbsp;Accountants Act, 1949&nbsp;shall continue in respect of its members in general and specifically with&nbsp;respect to audits&nbsp;pertaining to private limited companies, and public unlisted companies.</li></ul>