In 2010, the Securities and Exchange Board of India issued a circular stating that all audit firms that perform financial statement audits of listed companies are subject to the Peer Review mechanism administered by ICAI. Finally, ICAI notes that it participates in the international standard-setting process and reviews and responds to exposure drafts by the IESBA. These valuable works are the product of substantial time, effort and resources, which you acknowledge by accepting the following terms of use. We are the global organization for the accountancy profession, comprising 180 member and associate organizations in 130 countries and jurisdictions, representing nearly 3 million professional accountants. However, as reported by ICAI-CMA, the QRB has not conducted any reviews as part of its mandate. ICAI. Under the authority of the Chartered Accountants Act of 1949 (revised in 2013), ICAI has established an I&D system. New Delhi: The Institute of Chartered Accountants of India (ICAI), being one of the premier accounting bodies, has achieved global recognition over the years for maintaining highest standards in technical, ethical areas and for sustaining stringent examination and complying with International Education Standards issued by International Federation of Accountants (IFAC). Ind AS are outlined in the Companies (Indian Accounting Standards) Rules of 2015 issued by the Ministry of Corporate Affairs (MCA), and the AS are outlined in the Companies (Accounting Standards) Rules of 2006. The Chartered Accountants Act of 1949 (revised in 2013) established the Quality Review Board) with the responsibility for the quality assurance (QA) reviews of audit firms that conduct statutory audits of public interest entities. The institute also participates in the international standard-setting process by reviewing and responding to exposure drafts issued by IAASB. Small and medium-sized entities (SMEs) are required to apply Ind AS but do not have to prepare a cash flow statement. The ASB was established in 1977 to develop accounting standards and has established an ongoing due process for considering new standards developed by the IASB to be adopted in India. The CASLB is comprised of members of the Council of the ICAI, representatives from the Ministry of Urban Development (MOUD), the CAG, the Controller General of Accounts , the National Institute of Urban Affairs, the Ministry of Panchayati Raj, the Directorate of Local Bodies, the Directorate of the Local Fund Audit Department, representatives from Academic institutions, and other professionals as appointed by ICAI. The Act grants ICAI authority to (i) establish initial professional development and continuing professional development (CPD) requirements; (ii) maintain a register of its members; (iii) ensure members’ adherence to laws and professional standards; and (iv) investigate and discipline members for professional misconduct. Associate, Institute of Chartered Accountants of India The identified gaps include the following: the I&D system is not linked with the institute’s QA mechanism but is linked with the QRB’s QA mechanism only referred by the QRB; the investigative committee does not have members that are independent of the profession; no timeframe exists to complete disposal of cases; results of the I&D process are not made available to the public but are eventually published in disciplinary volumes which are for sale; and while ICAI does regularly liaise with external investigating agencies and the government on matters, a formal process to liaise with these external parties does not exist. It is envisioned that as a part of its efforts to oversee the quality of services, the NFRA will establish quality assurance (QA) and investigative and disciplinary (I&D) mechanisms for auditors and audit firms. Approved accounting standards are then published in the Gazette of India and are authoritative under law. We support the development, adoption, and implementation of high-quality international standards. Any person accessing this site agrees to the Terms of Use and Privacy Policy. The Peer Review Mechanism’s objectives are to ensure that Chartered Accountants who are authorized to conduct audits are complying with applicable standards set by the institute and that audit firms have proper systems in place to demonstrate compliance with the applicable standards. In 2013, upon the revision of the Companies Act, the National Financial Reporting Authority (NFRA) was established to replace the NACAS. 2. Under the Chartered Accountants Act of 1949, the ICAI is responsible for establishing initial professional development (IPD) and continuing development (CPD) requirements for Chartered Accountants. The AS were developed utilizing an older version of IFRS, and ICAI reports that there are plans to update the AS to be in line with current international standards. It is unclear if there are plans to address the identified gaps. //]]>. July 16, 2020. ICAI is encouraged to clarify the timeline for convergence with the 2018 IESBA Code of Ethics. Insights, resources and tools from leading voices in accountancy and business. In addition, Section 148 of the Companies Act states that the Central Government may require that certain companies conduct cost audits in addition to audits of financial statements. Atul Kumar Gupta, President, The Institute of Chartered Accountants of India (ICAI) has been elected as the Board Member of the International Federation of Accountants (IFAC) at the IFAC Council Meeting in November 2020. As of July 2018, the NFRA has not yet become operational. ICAI is the fourth institute to join Chartered Accountants Worldwide as an Associate member, making a key contribution to the global expansion of the organisation. ICAI reports that its Peer Review mechanism is aligned with the requirements of SMO 1. Members who have achieved all requirements become Associate Chartered Accountants (ACA). Status: Review & Improve. In accordance with the Companies Act of 1956 (revised in 2013), the Accounting Standards Board (ASB) operating under the ICAI is responsible for developing national accounting standards. The Institute of Chartered Accountants of India (ICAI) reports that in order for the GASAB to eventually adopt accrual-based standards, it has also developed Indian Government Financial Reporting Standards (IGFRS), which are developed using IPSAS as a reference. ALL RIGHTS RESERVED. [CDATA[ The AASB of ICAI also issues Standards on Assurance Engagements, Standards on Review Engagements, and Standards on Related Services. ICAI-CMA is responsible for (i) maintaining and publishing a register of persons qualified to practice as Cost and Management Accountants;(ii) issuing certificates of practice; (iii) prescribing IPD and CPD requirements for its members; (iv) establishing ethical, professional and technical standards; (v) monitoring the performance of its members; and (vi) investigating and disciplining members for misconduct. In 2002, ICAI developed the Peer Review Mechanism that covers all audit work conducted by its members. CAPA is a regional international body representing 34 professional bodies from 24 countries of Asia and Pacific region. (function(){for(var g="function"==typeof Object.defineProperties?Object.defineProperty:function(b,c,a){if(a.get||a.set)throw new TypeError("ES3 does not support getters and setters. In addition to being an IFAC member, ICAI-CMA is also a member of CAPA and SAFA. Current And where possible, ICAI is encouraged to also consider the full adoption of IPSAS during the development of local self-government accounting standards. In 2016, the institute reports that it conducted a revision of its curriculum and that while its syllabus incorporates some elements of the revised IES, it is not clear how the institute may be addressing all the revised 2015 requirements. Status: Execute.