From now on, the Financial Reporting Council (FRC) under the Act, will be the regulatory body for ensuring transparency and accountability in accounting and auditing of financial organizations, including various government, autonomous and non-government institutions
.
01.to setup / adopt the Accounting Standards/Financial Reporting Standards and Auditing Standards with Standard Code of Conducts for the professional Accountants;
02. to license auditors and maintain a register of licensed auditors and approval of firms;
03. to monitor and review the authenticity and fairness of financial reporting by public interest entities;
04. to monitor the practice of auditors with a view to maintaining high standards of professional conduct;
05. to monitor and enforce compliance with Accounting Standards/Financial Reporting Standards and Auditing Standards, etc.
Registration with Financial Reporting Council:
After the establishment of the FRC,
all auditor and audit firm must register with the FRC. Without registration, no
auditor and audit firm will be able to provide auditing service to any entity
related with public interest.
For registration, the auditor or audit firm needs to apply to the FRC. The FRC
will review the application and will provide the registration pursuant to the
rules and guidelines.
Cancellation and fine
If any auditor or any audit firm violate any provisions of the act or any of its rules and guidelines, FRC may cancel or suspend the registration and may fine as well.