Title: The Institute of Chartered Accountants of India
1The Institute of Chartered Accountants of India
Established by an Act of Indian Parliament The
Chartered Accountants Act, 1949
2Our Mission
The Indian Accountancy Profession will be the
Valued Trustee of World Class Financial
competencies, Good Governance and Competitiveness
3Profile of ICAI
- Was set up in 1949 under the Chartered
Accountants Act, 1949 even before adoption of
Constitution of India in 1950
Since then Profession has grown leaps and bounds
in terms of Membership and Student base
4Profession in India
- 160K Members spread throughout the country and in
different 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
Nation Building - Technical Standards based on International
Standards - Focus on Capacity Building in the emerging
context
5ICAI Profile
6Role 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
7ICAI Network
Decentralized Offices
8(No Transcript)
9The 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
to constitute necessary standing and non-standing
Committees
10Standing Committees
Executive Committee
Finance Committee
Examination Committee
Disciplinary Committee (Section 21D)
11Key Non-Standing Committees
Accounting Standards Board
Auditing Assurance Standards Board
Committee on Banking, Insurance Pension
Committee on Accounting Standards for Local
Bodies
Expert Advisory Committee
Research Committee
Board of Studies
Editorial Board
Ethical Standards Board
Corporate Laws Corporate Governance Committee
Committee on Information Technology
Committee on Economic and Commercial Laws WTO
12Key Non-Standing Committees
Board of Discipline (Sec.21 A)
Peer Review Board
Financial Reporting Review Board
Committee for Capacity Building of CA Firms SMP
Committee
Committee for Members in Industry
Internal Audit Standards Board
Audit Committee
Vision Perspective Planning Committee
ICAI-ICWAI-ICSI Committee
Committee on Public Finance Government
Accounting
Comm. On Fin. Markets Investors Protection
Committee on International Taxation
13Key Non-Standing Committees
Direct Taxes Committee
Indirect taxes Committee
Continuing Professional Education Committee
Disciplinary Committee (Sec.21B)
Professional Development Committee
International Affairs Committee
The Institute is responsive to the emerging
challenges and constitutes new committees for
effectively meeting these challenges Research
Unit ICAI-Accounting Research Foundation
14Organization Structure
15Institute Functions
16ICAI A Key National Body
- Offers inputs to
- Comptroller Auditor General of India
- Ministry of Corporate 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
17Important Initiative Undertaken to Align 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 of firms - 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 to CA students - Facilitating accounting reforms in various areas
18Examples of Involvement of ICAI in National
Organizations
- 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
19Education 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
20Highlight of the New Scheme of Education
Training
- I Common Proficiency Test
- Compulsory
- II 3½ years of Practical Training concurrent
with components of Professional Competence
Examination (PCE) and Final - Complete 100 hours of Compulsory Computer
Training before appearing for PCE. - Undergo General Management Communication Skills
(GMCS) after 18 months of practical training and
completion of PCE - Eligible to appear for Final Examination on
completion of 3 ½ years and passing of PCE
21Highlights 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
22Examination
- One of the largest Accounting examination
networks - Administrative conduct of examination and exam
related process 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 other countries
23Accounting Standards Convergence with IFRSs
- ICAI has decided to converge with IFRSs from
accounting periods commencing on or after 1st
Aril 2011 for listed entities and other public
interests entities such as banks, insurance
companies and large-sized entities - For smooth transition to the IFRSs, ICAI will
take up the matter of Convergence with NACAS, and
various regulators such as the RBI, SEBI and
IRDA. - ICAI would also formulate its work-plan to ensure
that IFRSs are effectively adopted from 1st April
2011. - IFRSs-specific training programs will be
organized for its members and others concerned to
prepare them to implement IFRSs. - IASB has also offered to help the ICAI in its
endeavors towards Convergence with IFRSs in India
24Research 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
175,000 circulation
25Professional Ethics
- Cardinal Principles
- Service before self
- Extends beyond the legal requirements
- Some major highlights
- Limit on fees for non-audit assignments
- Prohibition on writing Books of Accounts of
Auditee company - Demarcation between External and Internal
Auditors - Professional fees for audit and other services
received by a firm not to exceed 40 of the gross
annual fees of the firm
- Prohibition on other occupations
- Prohibition on solicitation
- Prohibition on advertisement and Canvassing
- Prohibition on financial interest in auditee
company - Restriction on number of audits
26Professional 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 new areas - Considered as critical in the changed Scenario
27Quality 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) - 5567 Strong panel of Reviewers maintained
- 4234 Reviewers have undergone training
- 4020 Practice units have been issued Peer Review
Certificates. - The Council of the Institute accepted the request
of SEBI that audit of listed companies shall be
carried out by the auditors who have undergone
Peer Review Process
28Quality Review Board
- Central Government has constituted Quality Review
Board consisting 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 non attestation will be subject
to Quality Review) - Disciplinary action if there is a deficiency in
service
29Peer 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 the
disciplinary proceedings
30Financial Reporting Review
- Financial Reporting Review Board constituted in
2002 to review general purpose financial
statements of certain enterprises - 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
31New 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 members and students - Recast of professional curriculum
- Lectures through Gyan Darshan Channel for CPT
PCC Students - Three Months Residential Course for improving
General Management Communication Skills
32New Initiatives- Education Training
- Establishment of more than 100 computer labs to
impart ITT Training all over India - Grant of status of approved research supervisors
by the Guru Govind Singh Indraprastha University - Establishment of CA Student Benevolent Fund
- Setting of Centre of Excellence for CA Students
- MOU with Bharathiar University Guru Jambheshwar
University Of Science And Technology (GJUST)
33New Initiatives- Profession and Standards
- 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
34International Presence
- ICAI is founder member of IFAC, CAPA, SAFA and
IIN - ICAI represented in
- IFAC - Board, SMP Committee, Developing Nations
Committee, International Public Sector Accounting
Standards Board. - CAPA Board member
- ICAI holds Permanent Secretariat, SAFA
- SAFA - Chairmen and member of various Committees
and Working Groups
35International Initiatives
- Opened New Chapters abroad- Singapore.
- MoU with University of Djibouti and ICA Australia
- Joint Declaration with The Bahrain Institute of
Banking and Finance and The Certified General
Accountants Association of Canada - MRAs with Foreign Accountancy Bodies like ICAEW
CPA Australia.
36International Initiatives
- MOU with College of Banking and Financial
Studies, Oman For institutionalization of
accounting profession in Oman. - MOU with Center of Excellence for Applied
Research and Training (CERT), Dubai- To
conceptualize and devise an international
curriculum in accountancy integrating local needs
keeping in mind various requirements of different
levels of accountancy and audit professionals. - Technical assistance programme to CPA Mongolia
and University of Djibouti ongoing. - Implementation of Guidelines for Article Training
Abroad.
37International 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, SMPs and SMEs, International Public
Sector Accounting Standards, International
Education Standards - SAFA adopted ICAI curriculum as model
- Student exchange programs held with ICAB, ICAP,
ICAN and ICASL - Opened an Office in Dubai
- Initiatives for recognition of ICAI qualification
by accounting bodies in other countries
38ICAI - Virtual Institute
- Virtual Institute integrates all the regions
and offices to present a unified 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 Institute
services online anywhere-anytime - With this all operational functions of the
institute have been brought onto a common
intranet with seamless flow and availability of
information
39ICAI - Virtual Institute
- 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 information and 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 to
users for accessing Institutes services taking
into consideration security requirements.
40The 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