New Delhi: Perturbed over the spate of banking frauds, the Union Cabinet is likely to consider on Thursday measures to strengthen the regulatory regime for auditors to prevent such incidents in the future.
The Cabinet headed by Prime Minister Narendra Modi will be meeting again on Thursday and is reported to have only one item on the agenda, sources said.
According to them, the meeting may consider setting up of National Financial Reporting Authority as envisaged in the Companies Act, 2013.
NAFRA will look into accounting and auditing standards, among others.
With the '12,700 crore fraud at Punjab National Bank also bringing the role of auditors into focus, the corporate affairs ministry is keen to push NAFRA, sources said.
While most provisions of the new Companies Act came into force from April 1, 2014, the section pertaining to NAFRA is yet to be implemented.
Finance minister Arun Jaitley expressed his displeausre over laxity in the regulatory oversight by auditors in the backdrop of the PNB scam.
