chartered accountancy of india

8/2/2019 Chartered Accountancy of India

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The Institute of CharteredAccountants of India

Established by anAct of Indian Parliament

The Chartered Accountants Act, 1949


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Our Mission

The Indian Accountancy Profession

will be the Valued Trustee of WorldClass Financial competencies,GoodGovernance and Competitiveness


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Profile of ICAI

Was set up in 1949 under theChartered Accountants Act, 1949even before adoption ofConstitution of India in 1950

Since then Profession has grown

leaps and bounds in terms ofMembership and Student base


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Profession in India

150K Members spread throughout the country and indifferent parts of the world

Sizeable studentship base

Increase in percentage of members joining industry

Chartered Accountants are rendering services in every walk

of economic life - Politics, Judiciary, Government,Agriculture, Corporate, NGOs

Profession is dominated by small firms

Increasing trends towards consolidation

Government of India looks at ICAI as Partner in NationBuilding

Technical Standards based on International Standards

Focus on Capacity Building in the emerging context


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Size of Firms

Vast majority SMPs with SME clients

Cost and time vis-a-vis detailed requirements of Standards We do not believe in separate auditing Standards for audit of SMEs

alternative between audit and review likely to create confusion,not much value addition seen w.r.t clients as well as costs and risksinvolved vis-a-vis remuneration

Size of Indian Accountancy Firms

33333

11111

111

11111

sole proprietor- partners3- partners33

- partners333- partners333


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ICAI ProfileParticulars No.

ORGANIZATIONAL

Regional Offices 5

Branches 118

Chapters Abroad 21

SPECIAL PURPOSE OUTFITS

CPE Study Circle 131

CPE Chapters 43

Reference Libraries 33

Accredited Institutions 273

MEMBERSHIP (000)

150

% in Practice 53%

STUDENTS (000)

520


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Role of ICAI

To regulate the profession of Accountancy

Education & Examination of Chartered Accountancy

Exercise Disciplinary Jurisdiction

Input on Policy matters to Government

Ensuring Standards of performance of Members

Formulation of Accounting Standards

Prescription of Engagement and Quality Control Standards

Laying down Ethical Standards

Continuing Professional Education

Financial Report Review

Monitoring Quality through Peer Review

Conducting Post Qualification Courses


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ICAI Network

Chapters Abroad Abu Dhabi

Bahrain Botswana Doha Dubai Indonesia Jeddah

Kuwait London Melbourne Muscat Nairobi (Kenya) New York Nigeria

Port Moresby (Papua New Guinea) Riyadh Saudi Arabia (Eastern province) Singapore Sydney Toronto Zambia

Decentralized Offices


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S t a n d N o n - S

C o m m

C o u n


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The Central Council

Consisting of 40 Members

32 Elected Members

8 Nominated by Central Government

Term: Three years

Headed by President

Elected by the Council for one year term

Empowered to frame Regulations under the Act and toconstitute necessary standing and non-standing Committees


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Standing Committees

Executive

Committee

Finance

Committee

Examination

Committee

DisciplinaryCommittee

(Section 21D)


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Key Non-Standing Committees

EthicalStandards

Board

EthicalStandards

Board

Comm. On Fin.Markets &InvestorsProtection

Comm. On Fin.Markets &InvestorsProtection

AccountingStandards

Board

AccountingStandards

Board

Auditing &AssuranceStandards

Board

Auditing &AssuranceStandards

Board

Committee onInsurance &

Pension

Committee onInsurance &

Pension

Committee onAccounting

Standards forLocal Bodies

Committee onAccountingStandards forLocal Bodies

Expert AdvisoryCommittee

Expert AdvisoryCommittee

ResearchCommittee

ResearchCommittee Board of Studies

Board of Studies Corporate LawsCommittee

Corporate LawsCommittee

Committee on

InformationTechnology

Committee on

InformationTechnology

Committeeon Trade Laws

& WTO

Committeeon Trade Laws

& WTO

Editorial BoardEditorial Board

Committeeon CorporateGovernance

Committeeon CorporateGovernance

Committee onEconomic and

Commercial Laws

Committee onEconomic and

Commercial Laws


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Key Non-Standing Committees - 2

Board of Discipline(Sec.21 A)

Board of Discipline(Sec.21 A)

Peer ReviewBoard

Peer ReviewBoard

Financial ReportingReview Board

Financial ReportingReview Board

Committee forMembers in Industry

Committee forMembers in Industry

Internal AuditStandards Board

Internal AuditStandards Board

ICAI-ICWAI-ICSICommittee

ICAI-ICWAI-ICSICommittee

Committee on

GovernmentAccounting

Committee on

GovernmentAccounting

ManagementAccountingCommittee

ManagementAccountingCommittee

Public FinanceCommittee

Public FinanceCommittee

Vision CommitteeVision Committee

Capacity BuildingCommittee

Capacity BuildingCommittee

Diamond JubileeCommittee

Diamond JubileeCommittee

PerspectivePlanning

Committee

PerspectivePlanningCommittee

Audit CommitteeAudit Committee

Committee onInternational

Taxation

Committee onInternational

Taxation


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Key Non-Standing Committees - 2

DisciplinaryCommittee (Sec.21B)

DisciplinaryCommittee (Sec.21B)

The Institute is responsive to the emerging challenges andconstitutes new committees for effectively meeting these

challenges

Research Unit: ICAI-Accounting Research Foundation

HR & AdminHR & AdminHigh Powered

Committee

High PoweredCommittee

Committee for Small& Medium

Practitioners

Committee for Small& Medium

Practitioners

InfrastructureCommittee

InfrastructureCommittee

RepresentationCommittee

RepresentationCommittee

Direct Tax

Committee

Direct Tax

Committee

Indirect tax

Committee

Indirect tax

Committee

ProfessionalDevelopment

Committee


Committee

ContinuingProfessional

EducationCommittee

ContinuingProfessional

EducationCommittee

International Affairs

Committee

International Affairs

Committee


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Organization Structure

D E P A R T M C O M M I T

S E C R E T A R Y T O

( S e c r e t a r y t o t h

V I C E - P R E S I D

P R E S I D E N T

.

E x a m i n D i s c i p l

M & S S A / C . &

H R D , C o u n

I n t e r n a t

A d m i n i s

T e c h n i c a

B o a r d o

C P E D i


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Institute Functions


AdvisoryRegulatory


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ICAI A Key National Body

Offers inputs to

Comptroller & Auditor General of India

Ministry of Company Affairs, Govt. of India

Reserve Bank of India

Securities and Exchange Board of India

Central Board of Direct Taxes

Insurance Regulatory and Development Authority

Departments of Central and State Governments

Departments of Public Enterprises

Important Initiative Undertaken to


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Important Initiative Undertaken toAlign with Changing Economic Order

Convergence with International Standards of Accounting and

Auditing Review and Revision of Education and training curriculum

Launch of Post Qualification Courses Capacity building offirms

Mandatory CPE Requirement

Peer Review Mechanism

Financial Report Review

Brand building Nationally and Internationally

Focused approach on issues relating to Corp. Governance.

Facilitating changes in regulatory frames. Vigorous pursuance of Mutual Recognition Agreements.

Arrangement with Universities for graduation qualification toCA students

Facilitating accounting reforms in various areas

E l f I l f ICAI i N i l


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Examples of Involvement of ICAI in NationalOrganizations

Drafting of Income Tax Laws

Drafting of Competition Law

Drafting of Company Law

Capital Market Development and Regulation

Corporate Governance

Accounting & Utilization of Governmental resources

WTO & GATS

Import Export Policy

Commercial and Economic Legislations

Non Banking Financial Companies


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Education and Training

Distant Mode of Education

Education Through Accredited Institutions and Branches

Meets the requirements of international educational

pronouncements of IFAC

Comprehensive theoretical and practical curriculum

Continuous review of the curriculum

Hi hli ht f th N S h f Ed ti &


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Highlight of the New Scheme of Education &Training

I Common Proficiency Test

CompulsoryII 3 years of Practical Training concurrent with components of

Professional Competence Examination (PCE) and Final

Complete 100 hours of Compulsory Computer Training beforeappearing for PCE.

Undergo General Management & Communication Skills (GMCS) after18 months of practical training and completion of PCE

Eligible to appear for Final Examination on completion of 3 yearsand passing of PCE


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Highlights of the New Syllabus

Financial Reporting

Corporate Financial Reporting IFRS based Financial Reporting

US GAAP based Financial Reporting

Strategic Management

Study of Business Environment

Understanding Strategic Planning and Analysis

Ability to understand and formulate Functional Strategies

Financial Management

Advanced Management Accounting

Information Technology and Systems Control

Business Ethics


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Examination

One of the largest Accounting examination networks

Administrative conduct of examination and exam relatedprocess largely computerized

Exams are held twice a year

Examination system considered to be of high standard &integrity worldwide

Has been lending expertise to accounting bodies in othercountries

Accounting Standards Convergence with


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Accounting Standards Convergence withIFRSs

ICAI has decided to converge with IFRSs from accounting periodscommencing on or after 1st Aril 2011 for listed entities and other

public interests entities such as banks, insurance companies andlarge-sized entities

For smooth transition to the IFRSs, ICAI will take up the matter ofConvergence with NACAS, and various regulators such as the RBI,SEBI and IRDA.

ICAI would also formulate its work-plan to ensure that IFRSs areeffectively adopted from 1st April 2011.

IFRSs-specific training programs will be organized for its membersand others concerned to prepare them to implement IFRSs.

IASB has also offered to help the ICAI in its endeavors towardsConvergence with IFRSs in India


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Convergence with IFRSs in India

Recognizing the need for convergence in India, Council ofICAI decided to converge with IFRSs from accountingperiods starting from 1st April 2011 for:

for public interest entities including listed entities, banks,insurance entities and other large sized entities,

subject to its confirmation by government and other legaland regulatory authorities

Strategy for Implementing Convergence


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Strategy for Implementing Convergencewith IFRSs in India

For Implementing Convergence with IFRSs from 1st April 2011,ICAI has identified following issues to be resolved:

Cooperation from Legal and Regulatory Authorities

Level of preparedness of Industry

Education and Training of auditors and prepares of FinancialStatements

Work Plan of ASB for smooth transition to IFRSs

Conceptual Issues with IFRSs

onst tut on o t e Group on


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onst tut on o t e Group onImplementation of Convergence

For resolving various issues, ASB of ICAI has Constituted Group onImplementation of Convergence with IFRSs, which constitutedfollowing subgroups:

Sub-Group for preparing the Work Plan of ASB and liaising with the

IASB

Sub-Group for approaching the Government and RegulatoryAuthorities

Sub-Group for liaising with the Industry Associations

Sub-Group on Education and Training on IFRSs

Engagement & Quality Control


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Engagement & Quality ControlStandards

On the Road to Convergence

AASB founder member of IFAC

Auditing standards based to the extent possible oncorresponding International Standards (IS) of

International Auditing and Assurance Standards Board(IAASB) - 35 Auditing Standards till 2006

Chalked out timeline for bridging gap in convergence withIS under IAASB Clarity Project

Hopes to achieve full convergence by December 2010.



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Engagement & Quality ControlStandards AASBs response to IAASB Clarity Project (2006 till

date):

Revised & more rigorous Due Process

Revised Framework & Preface

AASs renamed & renumbered in line with IAASB terminology ENGAGEMENT STANDARDS:

Standards on Auditing

Standards on Review Engagements

Standards on Assurance Engagements

Standards on Related Services

Mother Standard on Quality Control Revised/ new Standards on Fraud, Audit Planning & Risk-based

Audits

Many new/ revised Standards in pipeline



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Engagement & Quality ControlStandards 32 Guidance Notes on Auditing issues

04 Industry specific Guidance Notes:* Banking * General Insurance

* Stockbrokers * Life Insurance

Milestones

AAS 12, Responsibility of Joint Auditors

Statement on the Companies (Auditors Report) Order, 2003

Study on Money Laundering

Implementation Guide to Quality Control Standard

Guide to Audit of SMEs

Backgrounder on Auditing Standards

Implementation Guide on Risk-based Audit (in the pipeline)

Study on Basel II

Technical Guide on E-commerce Implications for Auditors


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Research and CPE

Commitment to advancement of knowledge in accountancy,auditing, taxation and allied areas

Published about 150 Publications

Expert Opinions on Applicability of Standards

20 Compendiums over 1000 opinions

More than 50 CPE materials published

3000 CPE programs held annually

ICAI-ARF to promote research on contemporary issues

Publishes a monthly journal with more than 175,000circulation

f


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Professional Ethics

Cardinal Principles

Service before self Extends beyond the legal requirements

Some major highlights

Prohibition on other occupations

Prohibition on solicitation

Prohibition on advertisement andCanvassing

Prohibition on financial interest in

auditee company Restriction on number of audits

Limit on fees for non-auditassignments

Prohibition on writing Books ofAccounts of Auditee company

Demarcation between External

and Internal Auditors Professional fees for audit and

other services received by afirm not to exceed 40% of thegross annual fees of the firm

f l l


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Professional Development

Identifying Role of Profession in emerging areas

Developing Practice Areas

Upgrading and updating the knowledge and skill sets

Developing technical material to facilitate practice in newareas

Considered as critical in the changed Scenario


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Quality Control Initiative Peer Review

Peer Review Board of established in March 2002

Focus on:

Technical Standards compliance

Quality of Reporting

Office Systems and Procedures (attestation services only)

Staff training Programmes (attestation services only)

3378 Strong panel of Reviewers maintained

2430 Reviewers have undergone training

1231 Practice units have been issue Peer Review Certificates

The Council of the Institute accepted the request of SEBI thataudit of listed companies shall be carried out by the auditors whohave undergone Peer Review Process

Q li R i B d


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Quality Review Board

Central Government has constituted Quality Review Boardconsisting of 11 persons.

Council of ICAI has nominated 5 members on QRB

Chairman and other 5 members have been appointed by

Central Government

All services provided by members (Both attestation and nonattestation will be subject to Quality Review)

Disciplinary action if there is a deficiency in service

P R i


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Peer Review

Peer Review Board established in March 2002

Reviews by Board to ensure

compliance with technical standards; and

existence, compliance and adherence to quality control

policies and procedures

Findings would not have any relationship with thedisciplinary proceedings

Fi i l R ti R i


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Financial Reporting Review

Financial Reporting Review Board constituted in 2002 toreview general purpose financial statements of certainenterprises

Boards findings would form basis for :

initiating action against auditor concerned; and

informing irregularity to relevant regulatory authority

Board seeks general purpose financial statements of top

500 companies in India on yearly basis

C d f Ethi


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Code of Ethics

PARTICULARS ICAI CODE IFAC CODE

(a) Approach Rule based. Principle based

(b) Framework Based on legal framework as per CA Act,

1949.

Conceptual framework based on

general principles.

(c) Authority Authority founded in specific Statute. It suggests basic principles inmodular form along withexamples without any statutoryauthority.

(d ) Enforceability Inbuilt mechanism for its enforcement is inplace.

Professional Accountants to seeenforceability themselves.

N I iti ti Ed ti & T i i


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New Initiatives- Education & Training

Launch of new course for Accounting Technicians & IPCC

Introduction of concept E-Learning

Launch of Virtual Institute Project providing e-services to membersand students

Recast of professional curriculum

Lectures through Gyan Darshan Channel for CPT & PCC Students

Three Months Residential Course for improving General Management& Communication Skills

Establishment of more than 100 computer labs to impart ITTTraining all over India

Grant of status of approved research supervisors by the GuruGovind Singh Indraprastha University

Establishment of CA Student Benevolent Fund

Setting of Centre of Excellence for CA Students

MOU with Bharathiar University & Guru Jambheshwar University OfScience And Technolo GJUS&T

New Initiatives- Profession and


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New Initiatives Profession andStandards

Convergence to IFRS- By April 2011

Convergence to Clarity Project

Cap on fee for rendering services other than audit

Disciplinary mechanism framework

Focus on bridging the expectation gap

I t ti l P


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International Presence

ICAI is founder member of IFAC, CAPA, SAFA and IIN

ICAI represented in :

IFAC - Board, Education Standards Board, SMP Committee,Developing Nations Committee, International Public SectorAccounting Standards Board, Professional Accountants inBusiness Committee

CAPA President & Board member

ICAI holds Permanent Secretariat, SAFA

SAFA - Chairmen and member of various Committees andWorking Groups

I t ti l I iti ti


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International Initiatives

Opening up of new Chapters abroad- Oman, New York & Singapore.

MRAs with Foreign Accountancy Bodies like ICAEW & CPA Australia.

MOU with College of Banking and Financial Studies, Oman Forinstitutionalization of accounting profession in Oman.

MOU with Center of Excellence for Applied Research and Training(CERT), Dubai- To conceptualize and devise an internationalcurriculum in accountancy integrating local needs keeping in mindvarious requirements of different levels of accountancy and auditprofessionals.

Technical assistance programme to CPA Mongolia and University ofDjibouti ongoing.

Implementation of Guidelines for Article Training Abroad.

Inte national Initiati es Contd


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International Initiatives Contd.

ICAI being consulted by IAASB in Audit Standards Setting

and by IASB in IFRS setting

Playing a lead role in the area of Developing Nations, SMPsand SMEs, International Public Sector AccountingStandards, International Education Standards

SAFA adopted ICAI curriculum as model

Student exchange programs held with ICAB, ICAP, ICANand ICASL

Opened an Office in Dubai

Initiatives for recognition of ICAI qualification by

accounting bodies in other countries

ICAI Virtual Institute


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ICAI - Virtual Institute

Virtual Institute integrates all the regions and offices to present aunified view of the operations of the entire Institute through a single

integrated enterprise system It FULFILLS the members and students right to convenience,

comfort and make the benefits of Information Technology (IT)available to the members and students for rendering the Instituteservices online anywhere-anytime

With this all operational functions of the institute have been brought

onto a common intranet with seamless flow and availability ofinformation

Towards Tomorrow Today ICAI started IT initiative towards a bright future and is in it today

ICAI Portal is effectively used to make a repository of informationand knowledge accessible to the members, students and employees

at the click of a button. The portal brings dynamic features to the content. It functions as a

Global Gateway to ICAI. The portal provides a single interface tousers for accessing Institutes services taking into considerationsecurity requirements.


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The Institute of Chartered Accountants of India[Set up by an Act of Parliament]

ICAI Bhawan, Indraprastha Marg, New Delhi 110 002.Phone: 91-11-39893989, 30110210

Website: www.icai.org
http://www.icai.org/http://www.icai.org/

chartered accountancy of india

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