The Institute of Chartered
Accountants of India
Established by an
Act of Indian Parliament
The Chartered Accountants Act, 1949
Our Mission
The Indian Accountancy Profession will be
the Valued Trustee of World Class
Financial competencies,Good Governance
and Competitiveness
Profile of ICAI
Was set up in 1949 under the Chartered
Accountants Act, 1949 even before
adoption of Constitution of India in 1950
Since then Profession has grown leaps
and bounds in terms of Membership and
Student base
Profession in India
145K Members spread throughout the country and in
different 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 Nation
Building
Technical Standards based on International Standards
Focus on Capacity Building in the emerging context
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
risks 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
ICAI Profile
Particulars 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
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
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
Zambia
Decentralized Offices
Standing Non-Standing
Committees
Council
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
Standing Committees
Executive
Committee
Finance
Committee
Examination
Committee
Key Non-Standing Committees
Committee
on Ethical
Standards
Comm. On
Fin. Markets
& Investors
Protection
Direct Tax
Committee
Accounting
Standards
Board
Auditing &
Assurance
Standards
Board
Committee
on Insurance
& Pension
Committee on
Accounting
Standards for
Local Bodies
Expert
Advisory
Committee
Research
Committee
Board of
Studies
Corporate &
Allied Laws
Committee
Information
Technology
Committee
Committee
on Trade
Laws
& WTO
Editorial
Board
Committee
on Corporate
Governance
Indirect tax
Committee
Committee on
Economic and
Commercial
Laws
Professional
Development
Committee
Continuing
Professional
Education
Committee
International
Affairs
Committee
Key Non-Standing Committees - 2
Board of
Discipline
Peer Review
Board
Financial
Reporting
Review Board
Committee on
Members in
Industry
Committee on
Internal Audit
ICAI-ICWAI-
ICSI
Committee
Government
Accounting
Committee
Management
Accounting
Committee
Public Finance
Committee
Vision
Committee
Capacity
Building
Committee
Diamond
Jubilee
Committee
Perspective
Planning
Committee
Audit
Committee
The Institute is responsive to the emerging challenges and constitutes
new committees for effectively meeting these challenges
Research Unit: ICAI-Accounting Research Foundation
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
Institute Functions
Professional
Development
Advisory
Regulatory
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
Align 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 to
CA students
Facilitating accounting reforms in various areas
Examples of Involvement of ICAI in National
Organizations
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
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
Highlight of the New Scheme of Education &
Training
I Common Proficiency Test
Compulsory
II 3 years of Practical Training concurrent with components of
Professional Competence Examination (PCE) and Final
Complete 100 hours of Compulsory Computer Training before
appearing 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
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
Examination
One of the largest Accounting examination networks
Administrative conduct of examination and exam related
process 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 other
countries
Accounting Standards Convergence with
IFRSs
ICAI has decided to converge with IFRSs from accounting periods
commencing on or after 1st Aril 2011 for listed entities and other
public interests entities such as banks, insurance companies and
large-sized entities
For smooth transition to the IFRSs, ICAI will take up the matter of
Convergence with NACAS, and various regulators such as the RBI,
SEBI and IRDA.
ICAI would also formulate its work-plan to ensure that IFRSs are
effectively adopted from 1st April 2011.
IFRSs-specific training programs will be organized for its members
and others concerned to prepare them to implement IFRSs.
IASB has also offered to help the ICAI in its endeavors towards
Convergence with IFRSs in India
Convergence with IFRSs in India
Recognizing the need for convergence in India, Council of
ICAI decided to converge with IFRSs from accounting
periods 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 legal
and regulatory authorities
Strategy for Implementing Convergence
with IFRSs in India
For Implementing Convergence with IFRSs from 1
st
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 Financial
Statements
Work Plan of ASB for smooth transition to IFRSs
Conceptual Issues with IFRSs
Constitution of the Group on
Implementation of Convergence
For resolving various issues, ASB of ICAI has Constituted Group on
Implementation of Convergence with IFRSs, which constituted
following 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
Standards
On the Road to Convergence
AASB founder member of IFAC
Auditing standards based to the extent possible on
corresponding International Standards (IS) of
International Auditing and Assurance Standards Board
(IAASB) - 35 Auditing Standards till 2006
Chalked out timeline for bridging gap in convergence with
IS under IAASB Clarity Project
Hopes to achieve full convergence by December 2010.
Engagement & Quality Control
Standards
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
Standards
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
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 175,000
circulation
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 and
Canvassing
Prohibition on financial interest in
auditee company
Restriction on number of audits
Limit on fees for non-audit
assignments
Prohibition on writing Books of
Accounts of Auditee company
Demarcation between External
and Internal Auditors
Professional fees for audit and
other services received by a
firm not to exceed 40% of the
gross annual fees of the firm
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 new
areas
Considered as critical in the changed Scenario
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 that
audit of listed companies shall be carried out by the auditors who
have undergone Peer Review Process
Quality Review Board
Central Government has constituted Quality Review Board
consisting 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 non
attestation will be subject to Quality Review)
Disciplinary action if there is a deficiency in service
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 the
disciplinary proceedings
Financial Reporting Review
Financial Reporting Review Board constituted in 2002 to
review general purpose financial statements of certain
enterprises
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
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 in
modular form along with
examples without any
statutory authority.
(d )
Enforceability Inbuilt mechanism for its enforcement is
in place.
Professional Accountants to
see enforceability themselves.
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 members
and 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 ITT
Training all over India
Grant of status of approved research supervisors by the Guru
Govind Singh Indraprastha University
Establishment of CA Student Benevolent Fund
Setting of Centre of Excellence for CA Students
New Initiatives- Profession and
Standards
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
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 Sector
Accounting Standards Board, Professional Accountants in
Business Committee
CAPA President & Board member
ICAI holds Permanent Secretariat, SAFA
SAFA - Chairmen and member of various Committees and
Working Groups
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 an
international curriculum in accountancy integrating local
needs keeping in mind various requirements of different
levels of accountancy and audit professionals.
Technical assistance programme to CPA Mongolia and
University of Djibouti ongoing.
Implementation of Guidelines for Article Training Abroad.
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 and
ICASL
Opened an Office in Dubai
Initiatives for recognition of ICAI qualification by accounting
bodies in other countries
ICAI - Virtual Institute
Virtual Institute integrates all the regions and offices to present a
unified 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 Institute
services online anywhere-anytime
With this all operational functions of the institute have been
brought onto a common intranet with seamless flow and
availability 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 information
and 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 to
users for accessing Institutes services taking into consideration
security requirements.
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
