The Institute of Chartered Accountants of India

1. The Institute of Chartered Accountants of India Established by an Act of Indian Parliament “The Chartered Accountants Act, 1949”

2. Agenda • ICAI Mission • About ICAI • Central Council • ICAI Committees • Functions • ICAI – Key National Body • Education & Training • New Scheme of Education & Training • Examinations • Accounting Standards • Auditing Standards • Research & CPE • Professional ethics • Professional Development • Peer Review • Financial Reporting Review • International Initiatives • New Initiatives

3. ICAI Mission The Indian Accountancy Profession will be the Valued Trustees of World Class Financial Competencies, Good Governance and Competitiveness

4. The Institute • Established by the Chartered Accountants Act 1949 • To regulate the profession of Accountancy • Education & Examination of Accountancy • Ensuring Standards of performance of Members • Formulation of Accounting Standards • Prescription of Auditing & Assurance Standards • Laying down Ethical Standards • Continuing Professional Education • Financial Report Review • Monitoring quality through Peer Review • Conducting Post Qualification Courses • Exercise Disciplinary Jurisdiction • Input on Policy matters to Government, Regulators etc.

5. ICAI Profile

6. ICAI Spread Chapters Abroad • Abu Dhabi • Bahrain • Doha • Dubai • Saudi Arabia (Eastern province) • Jeddah • Nairobi (Kenya) • Riyadh • Zambia • Botswana • London • Indonesia • Kuwait • Nigeria • Port Moresby (Papua New Guinea) Office in Dubai

8. The Central Council • Consisting of 30 Members • 24 Elected Members • 6 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

9. Standing Committees

10. Imp. Non-Standing Committees Accounting Standards Board Accounting & Assurance Standards Board Committee on Insurance & Pension Standards Interpretations Committee Expert Advisory Committee Research Committee Board of Studies Corporate & Allied Laws Committee Information Technology Committee Committee on Trade Laws & WTO Committee on Ethical Standards Comm. On Fin. Markets & Investors’ Protection Fiscal Laws Committee

11. Imp. Non-Standing Committees - 2 Professional Development Committee Continuing Professional Education Committee International Affairs Committee Audit Committee Peer Review Board Financial Reporting Review Board Committee on Members in Industry The Institute is responsive to the emerging challenges and constitutes new committees for effectively meeting these challenges Research Unit: ICAI-Accounting Research Foundation

12. Organisation Structure

13. Professional Development Advisory Regulatory Institute Functions

14. 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

15. Examples of Involvement of ICAI in National Organisations • 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

16. 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

17. Highlight of the New Scheme of Education & Training I Common Proficiency Test • Compulsory II 3½ 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 ½ years and passing of PCE

18. Highlight 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

19. Examination • One of the largest Accounting examination networks • 120,000 students appear in the examinations • Administrative conduct of examination and exam related process largely computerised • Exams are held twice in a year • Examination system considered to be of high standard & integrity worldwide • Has been lending expertise to accounting bodies in other countries

20. Accounting Standards • Formulation through wider participation and consultation • Harmonisation with International Standards • Mechanism for issuance of interpretations • Ensuring effective implementation through comprehensive framework

21. Auditing Standards • For ensuring quality in audit process • Formulation through wider participation and consultation • Harmonization with International Standards • 40 Guidance Notes on other issues • Constant dialogue with authorities like C&AG, RBI • ICAI is consulted by IAASB on standard setting

22. 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

23. 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

24. 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

25. 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

26. Financial Reporting Review • Financial Reporting Review Board constituted in 2002 to review general purpose financial statements of certain enterprises • Board’s 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

27. International Initiatives • Extended support to ICAN and ICASL in terms of focussed MOUs • Joint conferences organised with IFAC, ICAEW, ICAP, ICASL, ICAN • SAFA adopted ICAI curriculum as model • ISA program launched in Sri Lanka • Student exchange programs held with ICAB, ICAP, ICAN and ICASL • MOU with UAE for development of Accounting Profession • MOU likely to be signed in near future with Sultanate of Oman

28. International Initiatives • ICAI being consulted by IAASB in Audit Standards Setting • ICAI represented in • IFAC – Board Member, Education Standards Board, SMP Committee, Developing Nations Committee, International Public Sector Accounting Standards Board, Professional Accountants in Business Committee • CAPA – Dy. President, Chairman, Strategic Committee • SAFA - President, Permanent Secretary, Chairmen of various Committees and Working Groups • Playing a lead role in the area of Developing Nations, SMPs and SMEs

29. New Initiatives • Establishment of Accounting Standards Interpretation Sub-Committee • Launched the Virtual Institute Project providing e-services to members and students • Cap on fee for rendering services other than audit • Disciplinary mechanism framework • Amendments proposed in Act • Recast professional curriculum • Bridging the expectation gap

30. 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

31. ICAI - Virtual Institute - 2 • 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 Institute’s services taking into consideration security requirements.

32. Thank You