It has also released a publication on assurance on integrated reporting. The document provides a review of trends, recent developments and challenges, as well as country case studies, on human capacity development in the areas of accounting and corporate reporting. The exposure draft seeks to achieve an appropriate focus by auditors on disclosures and encourage earlier auditor attention on them during the audit process, including disclosures where the information is not derived from the accounting system. New framework on audit quality 19 Feb The International Auditing and Assurance Standards Board IAASB has published a framework on audit quality, which aims to raise awareness of the key elements of audit quality, encourage key stakeholders to do more to increase audit quality, and facilitate greater dialogue between key stakeholders on the topic.
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It is a quotation from the Upanishads Kathopanishad. Shastri, a Chartered Accountant from Chennai went to Sri Aurobindo and requested him through a letter to give an emblem to the newly formed Institute of which he was an elected member from the Southern India.
In reply to this request, Sri Aurobindo gave him the emblem with a Garuda , the mythical eagle in the center and a quotation from the Upanishad: Ya Aeshu Suptaeshu Jagruti. The emblem along with the motto was placed at the first meeting of the Council of the Institute and was accepted amongst many other emblems placed by other members of the Council. Apart from its emblem, ICAI also has a separate logo for its members. It also required the appointment of a formal Auditor with prescribed qualifications to audit such records.
In order to act as an auditor, a person had to acquire a restricted certificate from the local government upon such conditions as may be prescribed. The holder of a restricted certificate was allowed to practice only within the province of an issue and in the language specified in the restricted certificate. On passing this diploma and completion of three years of articled training under an approved accountant, a person was held eligible for grant of an unrestricted certificate.
This certificate entitling the holder to practice as an auditor throughout India. Later on, the issue of restricted certificates was discontinued in the year In the year , it was decided that the Government of India should maintain a register called the Register of Accountants. Any person whose name was entered in such register was called a Registered Accountant.
However it was felt that the accountancy profession was largely unregulated, and this caused lots of confusion as regards the qualifications of auditors. Hence in the year , just after independence in , an expert committee was created to look into the matter.
The Government of India accepted the recommendation and passed the Chartered Accountants Act in even before India became a republic. Under section 3 of the said Act, ICAI is established as a body corporate with perpetual succession and a common seal.
Unlike most other commonwealth countries , the word chartered does not refer to a royal charter , since India is a republic. At the time of passing the Chartered Accountants Act, various titles used for similar professionals in other countries were considered, such as Certified Public Accountant. However, many accountants had already acquired membership of the Institute of Chartered Accountants in England and Wales and other Chartered Societies of Great Britain and were practicing as Chartered Accountants.
This had created some sort of brand value. This designation inherited a public impression that Chartered Accountants had better qualifications than Registered Accountants. After much debate in the Indian Constituent Assembly , the controversial term, chartered was accepted. This day is celebrated as Chartered Accountants day every year. Becoming a member requires passing the prescribed examinations, three years of practical training known as articleship and meeting other requirements under the Act and Regulations.
Further based on holding Certificate of Practice, they may also be classified as practicing and non-practicing Chartered Accountants.
As of December , the Institute has 2,80, members out of which 1,89, are Associates and 90, are Fellows. Chaturvedi Family is credited to be the only family in India to be Chartered Accountants in 5 Generations. Generally, associates are members of the Institute with less than 5 years of membership after which they become entitled to apply for being a fellow member. Some associate members, particularly those not in practice, often voluntarily chose not to apply to be a fellow due to a variety of reasons.
An associate member who has been in continuous practice in India or has worked for a commercial or government organization for at least five years and meets other conditions as prescribed can apply to the Institute to get designated as a "Fellow". Responsibilities and voting rights of both types of members remain the same but only fellows can be elected to the Council and Regional Councils of ICAI.
Fellows are perceived as enjoying a higher status due to their long professional experience. Once a member obtains a Certificate of Practice, his responsibility to the society increases manifold. The ethical principles applicable to a practicing CA provided in the first and second schedule of the Chartered Accountants Act, are more rigorous than the ones applicable to non-practicing CAs or both.
Council of the institute[ edit ] Map of India showing the jurisdictions of the five Regional Councils of ICAI The management of the affairs of the institute is undertaken by a council constituted under the Chartered Accountants Act, The elected members of the council are elected under the single transferable vote system by the members of the institute.
The council is re-elected every three years. The council elects two of its members to be president and vice-president who hold office for one year. The president is the chief executive authority of the council. Kapadia to CA Atul K Gupta is the current president. CA Nihar Niranjan Jambusaria is the current vice president of the council, and will be the next president of the council after the vacation of office by the current president.
Code of ethics[ edit ] The institute has a detailed code of ethics and actions in contravention of such code results in disciplinary action against the erring members. These together form the basis of regulation of the profession. The Council also has a Peer Review Board that ensures that in carrying out their professional attestation services assignments, the members of the institute a comply with the Technical Standards laid down by the institute and b have in place proper systems including documentation systems for maintaining the quality of the attestation services work they perform.
These entities are quasi-judicial and have substantial powers like that of a Civil Court to summon and enforce attendance or require discovery and production of documents on affidavit or otherwise. On receipt of any information or complaint that a member has allegedly engaged in any misconduct , the Director Discipline shall arrive at a prima facie opinion whether or not there is any misconduct.
If the Director Discipline is of the opinion that the misconduct is covered by the items listed in the first schedule of the Chartered Accountants Act, , he shall refer the case to the Board of Discipline. If he is of the Opinion that the case is covered by the Second Schedule or both schedules of the CA Act, he will refer the case to the Disciplinary Committee. Any member aggrieved by any order may approach the Appellate Authority. It should be borne in mind that this disciplinary proceeding is not in lieu of or an alternative for criminal proceedings in a court.
Criminal proceedings against a Chartered Accountant and disciplinary action by ICAI are two separate issues and one need not wait for another to be completed first. The Committee has also taken action against members for alleged irregularities in the books of Maytas Properties and Maytas Infra and the role played by their auditors.
The ICAI website lists 35 as the number of cases in which inquiry was completed by the Disciplinary Committee in the past one year since February The list of members held guilty of professional or other misconduct is published periodically. These multinational firms cannot legally practice in India but they are practicing in India by surrogate means, operating through tie-ups with local firms, though the partners involved are from India, since only a member of the institute can be an auditor of an Indian entity.
ICAI lacks jurisdictional powers to punish these or for that matter any firm, as under its current regulations it only has the power to proceed against individual members. The institute has asked the Ministry of Corporate Affairs, Government of India to grant additional powers so that it may proceed against firms whose partners or employees are frequent offenders.
Auditing and Assurance
It is a quotation from the Upanishads Kathopanishad. Shastri, a Chartered Accountant from Chennai went to Sri Aurobindo and requested him through a letter to give an emblem to the newly formed Institute of which he was an elected member from the Southern India. In reply to this request, Sri Aurobindo gave him the emblem with a Garuda , the mythical eagle in the center and a quotation from the Upanishad: Ya Aeshu Suptaeshu Jagruti. The emblem along with the motto was placed at the first meeting of the Council of the Institute and was accepted amongst many other emblems placed by other members of the Council.
Auditing and Assurance Standards (India)
Auditing and Assurance Standards (India)