The Institute of Chartered Accountants of India

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The Institute of Chartered Accountants of India
Established by an Act of Indian Parliament The
Chartered Accountants Act, 1949
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Our Mission
The Indian Accountancy Profession will be the
Valued Trustee of World Class Financial
competencies, Good Governance and Competitiveness
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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
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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

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ICAI Profile
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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
Decentralized Offices
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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
  to constitute necessary standing and non-standing
  Committees

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Standing Committees
Executive Committee
Finance Committee
Examination Committee
Disciplinary Committee (Section 21D)
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Key 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
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Key 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
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Key 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
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Organization Structure
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Institute Functions
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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

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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

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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

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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

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Highlight 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

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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
  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

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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

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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
  175,000 circulation

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Professional 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

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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 new areas
• 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)
• 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

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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

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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 the
  disciplinary proceedings

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Financial 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

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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 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

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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 (GJUST)

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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

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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

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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.

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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.

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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, 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

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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

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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 Institutes services taking
  into consideration security 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 [phone],
30110210 Website www.icai.org