On April 20, 2023, the Institute of Chartered Accountants of India (ICAI) held a press conference at which President CA Aniket Sunil Talati emphasised the importance of combining New-Age Thinking with the Traditional Approach. He also discussed the institute’s efforts to improve audit quality mechanisms, benchmark global best practises in sustainability reporting and assurance standards, and participate actively in G20 endeavours with the Indian government. With more than 3.75 lakh members and 7.80 lakh students, the ICAI is the world’s second-largest accounting body.
ICAI’s Commitment to Supporting India’s Economic Growth
The ICAI has joined the B20 Dialogue as a key partner, demonstrating its commitment to assisting the government in making India a Vishwaguru. President Talati stated that the collaboration is a critical milestone for the institute and advances India’s economic growth story.
The Institute actively participates in G20 initiatives with the Government of India, and it is advancing India’s economic growth story by becoming a key partner in the B20 dialogue. The ICAI has always been active in assisting the government and other countries in their various initiatives to promote the Chartered Accountancy profession and implement various concepts that are useful in the operation of Accountancy Institutes.
ICAI’s Regulatory and Disciplinary Mechanisms
President Talati emphasised the importance of the institute’s regulatory framework and disciplinary mechanisms, stating that they are the intricate systems on which the institute stands. He stated that the ICAI, along with its Disciplinary Directorate, Financial Reporting Review Board, Peer Review Board, Taxation Audits Quality Review Board, and Centre for Audit Quality, is working to make these mechanisms more robust and responsive. He also stated that the ICAI has a zero-tolerance policy for disciplinary cases and has mechanisms in place to deal with them. Since 2007, the total number of cases registered under the new DC mechanism is 6,766, with 4,249 cases concluded as of March 31, 2023. The remaining cases are either at the prima facie stage or at the hearing stage before the Board of Discipline/Disciplinary Committee.
ICAI’s Unique Document Identification Number (UDIN) System
The ICAI created and implemented the Unique Document Identification Number (UDIN) system, which generates a unique number for each document certified/attested by a practising Chartered Accountant (CA) and registered with the UDIN portal. President Talati stated that as of April 12, 2023, approximately 4.89 crore UDINs had been generated, and 1.38 lakh members had registered on the UDIN portal.
ICAI’s Recent Developments
The ICAI has issued the “Guidance Note on Audit of Banks 2023” edition, which provides detailed guidance to auditors performing audits of banks and bank branches. The institute has also published the “Implementation Guide on Reporting Under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014” (Implementation Guide on Audit Trail), which provides comprehensive guidance on various aspects of this new reporting requirement.
ICAI’s Commitment to Helping Government and Other Countries
The ICAI has always been active in assisting the government and other countries in promoting the chartered accountancy profession and implementing various concepts useful in the operation of accounting institutes. The ICAI was approached by the Central Bureau of Communication (CBC), Ministry of Information and Broadcasting, Government of India, to rely on UDIN to assess the veracity of information certified by CAs in the prescribed format for the empanelment of news agencies based on circulation and rates. The National Board of Accountants and Auditors (NBAA) of Tanzania has approved the implementation of the UDIN system, and the NBAA has requested that the ICAI share the step-by-step process for implementing UDIN.
Conclusion
The Institute of Chartered Accountants of India (ICAI) is committed to improving audit and reporting standards and promoting the chartered accountancy profession in India and around the world. It is the world’s second-largest accounting body, with over 3.75 lakh members and over 7.80 lakh students. The Institute has undertaken a number of initiatives to promote the use of technology and best practises in accounting and reporting. It has also created a number of guidance notes and implementation guides to provide detailed guidance to its members on a variety of accounting and reporting topics.
The ICAI has a zero-tolerance policy towards any disciplinary case and has put in place all possible mechanisms to deal with such cases. The Institute has also created an innovative concept called the Unique Document Identification Number (UDIN), which assigns a unique number to each document certified/attested by a Chartered Accountant in practise.
The ICAI is dedicated to continuing its agenda of inclusive growth and elevating the profession. The Institute will continue to pursue its mission of improving accounting and reporting standards and promoting the chartered accountancy profession.