The Institute of Chartered The Institute of Chartered Accountants of IndiaAccountants of India
Established by an Act of Indian Parliament
“The Chartered Accountants Act, 1949”
AgendaAgenda• ICAI Mission• About ICAI• Central Council• ICAI Committees• Functions • ICAI – Key National Body• Education & Training
– New Scheme of Education & Training• Examinations• Accounting Standards • Auditing Standards• Research & CPE • Professional ethics• Professional Development• Peer Review• Financial Reporting Review• International Initiatives• New Initiatives
ICAI MissionICAI Mission
The Indian Accountancy Profession
will be the Valued Trustees of World Class Financial Competencies, Good
Governance and Competitiveness
The InstituteThe Institute• Established by the Chartered Accountants Act 1949• To regulate the profession of Accountancy• Education & Examination of Accountancy• Ensuring Standards of performance of Members
– Formulation of Accounting Standards– Prescription of Auditing & Assurance Standards– Laying down Ethical Standards– Continuing Professional Education– Financial Report Review– Monitoring quality through Peer Review– Conducting Post Qualification Courses
• Exercise Disciplinary Jurisdiction • Input on Policy matters to Government, Regulators
etc.
ICAI ProfileICAI ProfileParticulars No.ORGANIZATIONAL
Regional Offices 5Branches 108Chapters Abroad 15
SPECIAL PURPOSE OUTFITSCPE Study Circle 174CPE Chapters 48Reference Libraries 20Accredited Institutions 273
MEMBERSHIP (‘000) 130% in Practice 60%
STUDENTS (‘000) 300
INTERNATIONAL PRESENCE
Founder Member of IFAC, IASB, CAPA, SAFA, IIN
Indian Accountants Benchmarked Internationally - 5% of Members settled in more
than 50 big cities around the World
Dominant presence in UAE, USA, UK etc.
ICAI SpreadICAI SpreadChapters Abroad• Abu Dhabi• Bahrain • Doha• Dubai• Saudi Arabia (Eastern province)• Jeddah• Nairobi (Kenya)• Riyadh• Zambia• Botswana• London• Indonesia• Kuwait • Nigeria• Port Moresby (Papua New Guinea)Office in Dubai
Standing Non-S tanding
Comm ittees
Council
The Central CouncilThe Central Council• Consisting of 30 Members
– 24 Elected Members– 6 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 CommitteesStanding Committees
Examination Committee
Executive Committee
Disciplinary Committee
Imp. Non-Standing Imp. Non-Standing CommitteesCommittees
Committee on Ethical Standards
Comm. On Fin. Markets & Investors’ Protection
Fiscal Laws Committee
Accounting Standards
Board
Accounting & Assurance Standards
Board
Committee on Insurance
& Pension
Standards Interpretations
Committee
Expert Advisory
CommitteeResearch Committee
Board of Studies
Corporate & Allied Laws Committee
Information Technology Committee
Committee on Trade
Laws & WTO
Imp. Non-Standing Committees - 2Imp. Non-Standing Committees - 2
The Institute is responsive to the emerging challenges and constitutes new committees for effectively meeting these challenges
Research Unit: ICAI-Accounting Research Foundation
Professional Development Committee
Continuing Professional Education Committee
International Affairs
CommitteeAudit
Committee
Peer Review Board
Financial Reporting
Review Board
Committee on Members in Industry
Organisation StructureOrganisation Structure
DE P A R T M E N T S C O M M I T T E E S
S E C R E T A R Y T O T H E C O U N C I L(S e c re ta ry to the I ns titu te )
V I C E -P R E S I DE N T
P R E S I DE N T
.
E xa m in a tion D isc ip lin a ry
M & S S A /C . & F ina n ce
H R D , P & A C o u n c il
In te rn atio n a l A ffa irs
A d m in is tra tion
T e ch n ica l D ire c to ra te
B o ard o f S tud ies
C P E D ire c to ra te
Institute FunctionsInstitute Functions
Professional Development
AdvisoryRegulatory
ICAI – A Key National BodyICAI – A Key National BodyOffers 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
Examples of Involvement of ICAI Examples of Involvement of ICAI in National Organisationsin National Organisations
• 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 TrainingEducation 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 Highlight of the New Scheme of Education & TrainingEducation & 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
Highlight of the New SyllabusHighlight of the New SyllabusFinancial 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 ManagementAdvanced Management Accounting Information Technology and Systems Control Business Ethics
ExaminationExamination• One of the largest Accounting examination
networks • 120,000 students appear in the
examinations• Administrative conduct of examination and
exam related process largely computerised • Exams are held twice in a year• Examination system considered to be of
high standard & integrity worldwide• Has been lending expertise to accounting
bodies in other countries
Accounting StandardsAccounting Standards• Formulation through wider participation and
consultation • Harmonisation with International Standards
• Mechanism for issuance of interpretations • Ensuring effective implementation through
comprehensive framework
Accounting Standards IAS
Indian AS
In effective use 38 28 Under preparation 7 Irrelevant to India 2 Guidance Note issued 1 Total 38 38
Auditing StandardsAuditing Standards• For ensuring quality in audit process• Formulation through wider participation and
consultation• Harmonization with International Standards
• 40 Guidance Notes on other issues• Constant dialogue with authorities like C&AG, RBI• ICAI is consulted by IAASB on standard setting
Auditing Standards ISAsIndian AAS
AAS Issued so far 38 33Irrelevant to India 2 ISA yet to be considered 2 Total 38 38
Research and CPEResearch 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 EthicsProfessional Ethics• 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
• 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 DevelopmentProfessional 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
Peer ReviewPeer 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 ReviewFinancial 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
International InitiativesInternational Initiatives• Extended support to ICAN and ICASL in
terms of focussed MOUs• Joint conferences organised with IFAC,
ICAEW, ICAP, ICASL, ICAN • SAFA adopted ICAI curriculum as model• ISA program launched in Sri Lanka• Student exchange programs held with ICAB,
ICAP, ICAN and ICASL• MOU with UAE for development of
Accounting Profession• MOU likely to be signed in near future with
Sultanate of Oman
International InitiativesInternational Initiatives• ICAI being consulted by IAASB in Audit
Standards Setting• ICAI represented in
– IFAC – Board Member, Education Standards Board, SMP Committee, Developing Nations Committee, International Public Sector Accounting Standards Board, Professional Accountants in Business Committee
– CAPA – Dy. President, Chairman, Strategic Committee
– SAFA - President, Permanent Secretary, Chairmen of various Committees and Working Groups
• Playing a lead role in the area of Developing Nations, SMPs and SMEs
New InitiativesNew Initiatives• Establishment of Accounting Standards
Interpretation Sub-Committee• Launched the Virtual Institute Project
providing e-services to members and students
• Cap on fee for rendering services other than audit
• Disciplinary mechanism framework• Amendments proposed in Act• Recast professional curriculum• Bridging the expectation gap
ICAI - Virtual InstituteICAI - 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 - 2ICAI - Virtual Institute - 2• 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.