The Institute of Chartered Accountants of India (ICAI) is making to finalize its international networking guidelines for Indian chartered accountant (CA) firms by the finish of this financial year. This is part of the mission of the ICAI to allow the Indian CA firms to compete on a global scale, as per ICAI President Ranjeet Kumar Agarwal while addressing the national capital.
To align with the contemporary economic conditions and the requirements of a globalized business environment, Agarwal revealed that the ICAI shall review and relax its advertising norms. ICAI at present is advertising the regulations limit the font size of the advertisements to 14 points.
As per the reference for our Committee on Aggregation of CA Firms, this initiative to frame international networking guidelines is included. We regard it as important for Indian firms to attain global recognition.
The Committee provided with the task of the amalgamation of CA firms, is too concentrating on the amendment of advertising norms. Such revisions are anticipated to assist Indian firms in attaining a more substantial foothold internationally. The motive of the committee is to finalize its report by mid-June, with the Central Council established to examine it in early July.
Providing authority to Indian CA Firms for Global Competitiveness
At present for international networking, the Indian CA firms do not have particular guidelines. ICAI recognizing this gap is making a stringent framework having the motive to foster global partnerships and improve the global standing of domestic firms. The same initiative is anticipated to set the Indian CA firms as leaders in the global accounting and auditing industry.
Agarwal said that “ICAI’s target is to make Indian CA firms larger and capable of competing internationally.” The institute which represents over 4 lakh members, is also concentrated on transforming India into a global accounting and auditing hub.
Supporting Aggregation and Merger of CA Firms
ICAI to motivate the consolidation among CA firms has started the measures to facilitate merger and demerger norms. For example, the period obligatory for the firms to remain integrated has been extended from 5 years to 10 years, furnishing effective flexibility for firms to reorganize their procedures.
ICAI is functioning to ease restrictive clauses that prevent CAs from advertising their services or directly concerning clients. Such reforms object to creating a level playing field and improve the global visibility of Indian CA firms.
Legislative amendment on the Horizon
ICAI’s goal is to suggest amendments to the Chartered Accountants Act, of 1949, to streamline the implementation of such amendments. The finalized guidelines shall be provided before the government for approval.
Handling Concerns for Auditing Standards
ICAI with the above has raised its reservations with the Ministry of Corporate Affairs for the suggested amendments to auditing standards recommended by the National Financial Reporting Authority (NFRA). These comprise amendments to SA 600, which controls the audit of group companies, and SA 299, associated with the joint liability of auditors. On these proposed changes, ICAI and NFRA remain divided, with ICAI advocating for revisions that align with the practical realities of auditing in India.
Addressing Global Future
The measure of the ICAI is to finalize the international networking norms and ease the current norms showing a transformative step for the accounting profession in India. ICAI by allowing the Indian CA firms to enhance and compete globally, is making the way for a robust, more competitive presence in the international market.
To align with the contemporary economic conditions and the requirements of a globalized business environment, Agarwal revealed that the ICAI shall review and relax its advertising norms. ICAI at present is advertising the regulations limit the font size of the advertisements to 14 points.
As per the reference for our Committee on Aggregation of CA Firms, this initiative to frame international networking guidelines is included. We regard it as important for Indian firms to attain global recognition.
The Committee provided with the task of the amalgamation of CA firms, is too concentrating on the amendment of advertising norms. Such revisions are anticipated to assist Indian firms in attaining a more substantial foothold internationally. The motive of the committee is to finalize its report by mid-June, with the Central Council established to examine it in early July.
Vision of the Prime Minister and ICAI’s Fast-Track Approach
Agarwal reflecting on Prime Minister Narendra Modi’s 2017 call to create Indian accounting firms that could join the ranks of the world’s Big 8, highlighted that the ICAI is proceeding to attain this goal. With around 96,000 CA firms in India, most of which are small proprietorships, significant progress is anticipated.
Initiatives of Artificial Intelligence (AI)
The institute with ICAIs new focus on AI is building a Gen AI tool to support its 4 lakh members and 9 lakh students. We have the motive to secure this GPT tool ready in the subsequent 3 months. It shall act as a digital assistant, increasing the efficiency of our members and students, Agarwal elaborated. 90 applications from IT vendors for this project have been received by ICAI.
ICAI is functioning for a complete transition to an e-office framework, targeting to become a paperless company by the end of June.
Read Also: ICAI New CA Logo with Guidelines for Members
‘Each One, Teach One’ Portal
Agarwal has announced the upcoming launch of a portal for the ‘Each One, Teach One’ program, where every ICAI member will mentor a student. The very initiative is created to facilitate personal and professional growth among desiring chartered accountants. The portal will monitor the social contributions of each member concerned in the program.
Seamless conduct of examinations
With zero issues the ongoing CA examinations, involving 4.36 lakh students from 293 centres all over the country are proceeding, Agarwal confirmed.
Such initiatives highlighted ICAIs devotion to promoting global competitiveness and deploying technology to assist its members and students. The forthcoming guidelines and the statutory amendments are set to place Indian CA firms to improve international integration and recognition.
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