Transcript Slide 1
The Institute of Chartered
Accountants of India
Established by an
Act of Indian Parliament
“The Chartered Accountants
Act, 1949”
Our Mission
The Indian Accountancy Profession will be the
Valued Trustee of World Class Financial
competencies, Good Governance and
Competitiveness
Profile 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
Profession 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
ICAI Profile
Particulars
No.
ORGANIZATIONAL
Regional Offices
5
Branches
126
Chapters Abroad
22
SPECIAL PURPOSE OUTFITS
CPE Study Circle
134
CPE Chapters
46
Reference Libraries
28
Accredited Institutions
273
MEMBERSHIP (‘000)
167
% in Practice
STUDENTS (‘000)
52%
726
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
ICAI Network
• Bahrain
• Abu Dhabi
• Botswana
• Indonesia
• Doha
• Jeddah
• Dubai
• Kuwait
New Delhi
Kanpur
Calcutta
• Port Moresby
•London
(Papua New Guinea)
• Riyadh
•Melbourne
• Saudi Arabia
(Eastern province)
•Muscat
• Singapore
•Nairobi (Kenya)
• Sydney
•New York
• Toronto
•Nigeria
• Zambia
•Ras-al-Khaimah
Mumbai
Chennai
Decentralized Offices
Council
Committees
Standing
Non-Standing
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 to constitute necessary
standing and non-standing Committees
Standing Committees
Executive
Committee
Finance
Committee
Examination
Committee
Disciplinary
Committee
(Section 21D)
Key Non-Standing Committees
Accounting
Standards
Board
Auditing &
Assurance
Standards
Board
Expert
Advisory
Committee
Research
Committee
Committee
on
Information
Technology
Corporate
Laws &
Corporate
Governance
Committee
Committee
on Banking,
Insurance &
Pension
Board of
Studies
Committee on
Economic and
Commercial
Laws & WTO
Committee on
Accounting
Standards for
Local Bodies
Editorial
Board
Ethical
Standards
Board
Key Non-Standing Committees
Financial
Reporting
Review Board
Board of
Discipline
(Sec.21 A)
Peer Review
Board
Committee for
Members in
Industry
Audit
Committee
Internal Audit
Standards
Board
Comm. On Fin.
Markets &
Investors’
Protection
ICAI-ICWAIICSI
Committee
Committee on
International
Taxation
Committee for
Capacity Building
of CA Firms & SMP
Committee
Vision &
Perspective
Planning
Committee
Committee on
Public Finance &
Government
Accounting
Key Non-Standing Committees
Direct Taxes
Committee
Indirect taxes
Committee
Professional
Development
Committee
Disciplinary
Committee
(Sec.21B)
Continuing
Professional
Education
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
Organization Structure
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PRESIDENT
VICE-PRESIDENT
SECRETARY TO THE COUNCIL
(Secretary to the Institute)
DEPARTMENTS
COMMITTEES
Administration
Examination
Disciplinary
M&SS
A/C. & Finance
HRD, P & A
Council
International Affairs
Technical Directorate
Board of Studies
CPE Directorate
Institute Functions
Professional
Development
Regulatory
Advisory
ICAI – 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
Important 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
Examples 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
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
Highlight of the New Scheme of Education & Training
I
Common Proficiency Test
II
Compulsory
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
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
Examination
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
Accounting 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
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 175,000 circulation
Professional Ethics
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Cardinal Principles
Service before self
Extends beyond the legal requirements
Some major highlights
Prohibition on other occupations
Prohibition on solicitation
Prohibition on advertisement and
Canvassing
Prohibition on financial interest in
auditee company
Restriction on number of audits
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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
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 new areas
Considered as critical in the changed Scenario
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)
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
Quality 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
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 the disciplinary proceedings
Financial Reporting Review
Financial Reporting Review Board constituted in 2002 to review general
purpose financial statements of certain enterprises
Board’s 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
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 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
New 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 (GJUS&T)
New 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
International 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
International 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.
International 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.
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, 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
ICAI - 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
ICAI - 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
Institute’s services taking into consideration security requirements.
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