Icai Index

8/12/2019 Icai Index

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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 World ClassFinancial competencies,Good Governance

and Competitiveness


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Profile of ICAI

Was set up in 1949 under the CharteredAccountants Act, 1949 even before

adoption of Constitution of India in 1950

Since then Profession has grown leaps

and bounds in terms of Membership andStudent base


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Profession in India

145K 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 andrisks involved vis-a-vis remuneration

Size of Indian Accountancy Firms

31950

102

27

989

12635

sole proprietor

2-5 partners

6-10 partners

11-15 partners

16-20 partners


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ICAI ProfileParticulars No.

ORGANIZATIONAL

Regional Offices 5

Branches 117

Chapters Abroad 20

SPECIAL PURPOSE OUTFITS

CPE Study Circle 131

CPE Chapters 43

Reference Libraries 33

Accredited Institutions 273

MEMBERSHIP (000) 145

% 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

New Delhi

Kanpur

Calcutta

Mumbai

Chennai

Chapters Abroad Abu Dhabi

Bahrain Botswana Doha Dubai Indonesia Jeddah

Kuwait London Melbourne Nairobi (Kenya) New York Nigeria Port Moresby (Papua New Guinea)

Riyadh Saudi Arabia (Eastern province) Sydney Toronto ZambiaDecentralized Offices


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Standing Non-Standing

Committees

Council


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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


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Key Non-Standing Committees

Committeeon EthicalStandards

Comm. OnFin. Markets& Investors

Protection

Direct TaxCommittee

AccountingStandards

Board

Auditing &AssuranceStandards

Board

Committeeon Insurance

& Pension

Committee onAccountingStandards forLocal Bodies

Expert

AdvisoryCommittee

Research

Committee

Board of

Studies

Corporate &

Allied LawsCommittee

InformationTechnologyCommittee

Committeeon Trade

Laws

& WTO

Editorial

Board

Committeeon CorporateGovernance

Indirect taxCommittee

Committee onEconomic andCommercial

Laws

ProfessionalDevelopment

Committee

ContinuingProfessional

EducationCommittee

InternationalAffairs

Committee


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Key Non-Standing Committees - 2

Board ofDiscipline

Peer ReviewBoard

FinancialReporting

Review Board

Committee onMembers in

Industry

Committee onInternal Audit

ICAI-ICWAI-ICSI

Committee

GovernmentAccountingCommittee

ManagementAccountingCommittee

Public FinanceCommittee

VisionCommittee

CapacityBuilding

Committee

DiamondJubilee

Committee

PerspectivePlanningCommittee

AuditCommittee

The Institute is responsive to the emerging challenges and constitutesnew committees for effectively meeting these challenges

Research Unit: ICAI-Accounting Research Foundation


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Organization Structure

DEPARTMENTS COMMITTEES

SECRETARY TO THE COUNCIL

(Secretary to the Institute)

VICE-PRESIDENT

PRESIDENT

.

Examination Disciplinary

M&SS A/C. & Finance

HRD, P & A Council

International Affairs

Administration

Technical Directorate

Board of Studies

CPE Directorate


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Institute Functions

Professional

Development

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 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 toCA students

Facilitating accounting reforms in various areas

l f l f C 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)after 18 months of practical training and completion of PCE

Eligible to appear for Final Examination on completion of 3 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 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 IFRSsin India

For Implementing Convergence with IFRSs from 1stApril 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

onstitution o t e roup on


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onstitution o t e roup 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 Regulatory Authorities

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-basedAudits

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 (AuditorsReport) 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


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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


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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 anystatutory authority.

(d ) Enforceability Inbuilt mechanism for its enforcement isin place.

Professional Accountants tosee enforceability 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

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 GeneralManagement & Communication Skills

Establishment of more than 100 computer labs to impart ITT

Training 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

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 and New York.Singapore Chapter on anvil.

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 aninternational curriculum in accountancy integrating localneeds keeping in mind various requirements of differentlevels of accountancy and audit professionals.

Technical assistance programme to CPA Mongolia andUniversity of Djibouti ongoing.

Implementation of Guidelines for Article Training Abroad.

I t ti l I iti ti C td


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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 andICASL

Opened an Office in Dubai

Initiatives for recognition of ICAI qualification by accountingbodies in other countries

ICAI Vi t al Instit te


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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 andavailability of information

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/

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