1. What is the primary purpose of NFRA?
A. To promote international trade
B. To ensure high standards in financial reporting and auditing
C. To manage India’s taxation policies
D. To support the ICAI in professional development
2. Under which section of the Companies Act was NFRA established?
A. Section 132(1)
B. Section 142(2)
C. Section 125(4)
D. Section 150(3)
3. What event led to the formation of NFRA?
A. Introduction of the GST Act
B. Punjab National Bank scam
C. Economic reforms of 1991
D. The rise of digital auditing practices
4. Which of the following entities is NOT under NFRA’s jurisdiction?
A. Listed companies
B. Unlisted public companies with a turnover of ₹1,200 crores
C. Private companies with a turnover of ₹500 crores
D. Insurance companies
5. What penalties can NFRA impose for professional misconduct by firms?
A. Up to ₹5 times the fees received
B. Up to ₹10 times the fees received
C. Up to ₹20 lakhs
D. No penalties, only warnings
6. Who appoints the Chairperson of NFRA?
A. Reserve Bank of India
B. ICAI Board
C. Central Government
D. Ministry of Corporate Affairs
7. Where is NFRA headquartered?
A. Mumbai
B. New Delhi
C. Chennai
D. Kolkata
Answer Key
- B. To ensure high standards in financial reporting and auditing
- A. Section 132(1)
- B. Punjab National Bank scam
- C. Private companies with a turnover of ₹500 crores
- B. Up to ₹10 times the fees received
- C. Central Government
- B. New Delhi