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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 WorldClass Financial competencies,GoodGovernance and Competitiveness
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Profile of ICAI
Was set up in 1949 under theChartered Accountants Act, 1949even before adoption ofConstitution of India in 1950
Since then Profession has grown
leaps and bounds in terms ofMembership and Student base
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Profession in India
150K 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 and risksinvolved vis-a-vis remuneration
Size of Indian Accountancy Firms
33333
11111
111
11111
sole proprietor- partners3- partners33
- partners333- partners333
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ICAI ProfileParticulars No.
ORGANIZATIONAL
Regional Offices 5
Branches 118
Chapters Abroad 21
SPECIAL PURPOSE OUTFITS
CPE Study Circle 131
CPE Chapters 43
Reference Libraries 33
Accredited Institutions 273
MEMBERSHIP (000)
150
% 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
Chapters Abroad Abu Dhabi
Bahrain Botswana Doha Dubai Indonesia Jeddah
Kuwait London Melbourne Muscat Nairobi (Kenya) New York Nigeria
Port Moresby (Papua New Guinea) Riyadh Saudi Arabia (Eastern province) Singapore Sydney Toronto Zambia
Decentralized Offices
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S t a n d N o n - S
C o m m
C o u n
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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 toconstitute necessary standing and non-standing Committees
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Standing Committees
Executive
Committee
Finance
Committee
Examination
Committee
DisciplinaryCommittee
(Section 21D)
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Key Non-Standing Committees
EthicalStandards
Board
EthicalStandards
Board
Comm. On Fin.Markets &InvestorsProtection
Comm. On Fin.Markets &InvestorsProtection
AccountingStandards
Board
AccountingStandards
Board
Auditing &AssuranceStandards
Board
Auditing &AssuranceStandards
Board
Committee onInsurance &
Pension
Committee onInsurance &
Pension
Committee onAccounting
Standards forLocal Bodies
Committee onAccountingStandards forLocal Bodies
Expert AdvisoryCommittee
Expert AdvisoryCommittee
ResearchCommittee
ResearchCommittee Board of Studies
Board of Studies Corporate LawsCommittee
Corporate LawsCommittee
Committee on
InformationTechnology
Committee on
InformationTechnology
Committeeon Trade Laws
& WTO
Committeeon Trade Laws
& WTO
Editorial BoardEditorial Board
Committeeon CorporateGovernance
Committeeon CorporateGovernance
Committee onEconomic and
Commercial Laws
Committee onEconomic and
Commercial Laws
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Key Non-Standing Committees - 2
Board of Discipline(Sec.21 A)
Board of Discipline(Sec.21 A)
Peer ReviewBoard
Peer ReviewBoard
Financial ReportingReview Board
Financial ReportingReview Board
Committee forMembers in Industry
Committee forMembers in Industry
Internal AuditStandards Board
Internal AuditStandards Board
ICAI-ICWAI-ICSICommittee
ICAI-ICWAI-ICSICommittee
Committee on
GovernmentAccounting
Committee on
GovernmentAccounting
ManagementAccountingCommittee
ManagementAccountingCommittee
Public FinanceCommittee
Public FinanceCommittee
Vision CommitteeVision Committee
Capacity BuildingCommittee
Capacity BuildingCommittee
Diamond JubileeCommittee
Diamond JubileeCommittee
PerspectivePlanning
Committee
PerspectivePlanningCommittee
Audit CommitteeAudit Committee
Committee onInternational
Taxation
Committee onInternational
Taxation
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Key Non-Standing Committees - 2
DisciplinaryCommittee (Sec.21B)
DisciplinaryCommittee (Sec.21B)
The Institute is responsive to the emerging challenges andconstitutes new committees for effectively meeting these
challenges
Research Unit: ICAI-Accounting Research Foundation
HR & AdminHR & AdminHigh Powered
Committee
High PoweredCommittee
Committee for Small& Medium
Practitioners
Committee for Small& Medium
Practitioners
InfrastructureCommittee
InfrastructureCommittee
RepresentationCommittee
RepresentationCommittee
Direct Tax
Committee
Direct Tax
Committee
Indirect tax
Committee
Indirect tax
Committee
ProfessionalDevelopment
Committee
ProfessionalDevelopment
Committee
ContinuingProfessional
EducationCommittee
ContinuingProfessional
EducationCommittee
International Affairs
Committee
International Affairs
Committee
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Organization Structure
D E P A R T M C O M M I T
S E C R E T A R Y T O
( S e c r e t a r y t o t h
V I C E - P R E S I D
P R E S I D E N T
.
E x a m i n D i s c i p l
M & S S A / C . &
H R D , C o u n
I n t e r n a t
A d m i n i s
T e c h n i c a
B o a r d o
C P E D i
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Institute Functions
ProfessionalDevelopment
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 offirms
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
E l f I l f ICAI i N i 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) after18 months of practical training and completion of PCE
Eligible to appear for Final Examination on completion of 3 yearsand 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 IFRSs in India
For Implementing Convergence with IFRSs from 1st April 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
onst tut on o t e Group on
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onst tut on o t e Group 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 RegulatoryAuthorities
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.
Engagement & Quality Control
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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-based
Audits
Many new/ revised Standards in pipeline
Engagement & Quality Control
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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 (Auditors Report) 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
f
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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
Fi i l R ti R i
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Financial Reporting Review
Financial Reporting Review Board constituted in 2002 toreview general purpose financial statements of certainenterprises
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
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 any statutoryauthority.
(d ) Enforceability Inbuilt mechanism for its enforcement is inplace.
Professional Accountants to seeenforceability 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 & IPCC
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 General Management& Communication Skills
Establishment of more than 100 computer labs to impart ITTTraining 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
MOU with Bharathiar University & Guru Jambheshwar University OfScience And Technolo GJUS&T
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, New York & Singapore.
MRAs with Foreign Accountancy Bodies like ICAEW & CPA Australia.
MOU with College of Banking and Financial Studies, Oman Forinstitutionalization of accounting profession in Oman.
MOU with Center of Excellence for Applied Research and Training(CERT), Dubai- To conceptualize and devise an internationalcurriculum in accountancy integrating local needs keeping in mindvarious requirements of different levels of accountancy and auditprofessionals.
Technical assistance programme to CPA Mongolia and University ofDjibouti ongoing.
Implementation of Guidelines for Article Training Abroad.
Inte national Initiati es Contd
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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, SMPsand SMEs, International Public Sector AccountingStandards, International Education Standards
SAFA adopted ICAI curriculum as model
Student exchange programs held with ICAB, ICAP, ICANand ICASL
Opened an Office in Dubai
Initiatives for recognition of ICAI qualification by
accounting bodies in other countries
ICAI Virtual Institute
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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 and availability ofinformation
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/