# National Financial Reporting Authority (NFRA) — Section 132
## 1. Purpose of NFRA
(a) To protect the public interest and the interests of investors, creditors and others associated with companies.
(b) To establish high-quality standards of Accounting and Auditing.
(c) To exercise effective oversight of accounting functions performed by companies and auditing functions performed by auditors.
## 2. Role / Functions of NFRA
NFRA shall:
(a) Maintain details of auditors appointed for companies;
(b) Recommend Accounting and Auditing Standards for approval by the Central Government;
(c) Monitor and enforce compliance with the standards it recommends;
(d) Oversee the quality of service of the professions associated with ensuring compliance and suggest measures for improvement;
(e) Promote awareness in relation to compliance of accounting and auditing standards;
(f) Co-operate with national and international organisations of independent audit regulators;
(g) Perform such other functions as may be necessary;
(h) Perform any other functions or powers of the Central Government delegated to it.
## 3. Why Was NFRA Created?
Before NFRA, ICAI alone regulated chartered accountants in India — a model criticised after large corporate failures (e.g., Satyam, IL&FS) for self-regulation conflicts. NFRA brings independent oversight specifically for companies of public interest.