Chartered accountants’ apex body ICAI on Wednesday notified the global networking guidelines, paving the way for creating large home grown domestic chartered accountant firms wherein they can also collaborate with global networks.
The guidelines would also bring the working of “Global Networks of Chartered accountants (or equivalent in respective jurisdictions) under the regulatory jurisdiction of ICAI in so far as their Indian operations are concerned”, according to the notification.
The move also assumes significance against the backdrop of larger government efforts to have homegrown big accounting firms that can help create more opportunities in the country's growing economy and also compete at the scale of global players.
The Institute of Chartered Accountants of India (ICAI) President Prasanna Kumar D on Wednesday said the guidelines have been notified and that a foreign network has to get registered with the institute in order to have collaborations with domestic chartered accountant firms.
In the gazette notification on the global networking guidelines, ICAI said it is expedient to create an enabling framework in India to develop professional networks for the chartered accountancy profession.
It also said the focus is to augment and strengthen the professional avenues in the emerging trade order, “domestically and internationally for domestic entities registered with ICAI, by enabling a level playing field to foster culture of innovation and competition”.
The guidelines would help enhance and synergise the capacity of domestic chartered accountants’ firms registered with the ICAI by enabling exposure to best global practices through provision of latent and emerging knowledge and technology sharing, including tools and processes. The ICAI has more than five lakh members.
ICAI to come out with information systems audit standards
The ICAI will come out with the information systems audit standards later this month. The Information Systems Audit Standards (ISAS) seeks to strengthen the audit process within the country’s digital ecosystem. The institute will be coming out with 11 ISAS.
ICAI president Prasanna Kumar D on Wednesday said it would be the first time that a professional institute would be coming out with such standards, and added that its central council approved the standards earlier this month. According to the institute, ISAS would establish a direct linkage between system controls and financial reporting integrity.
“In an environment where financial statements are ERP (Enterprise Resource Planning)-generated, system-processed, algorithm-driven, and cloud-hosted, strong information systems controls are essential. By strengthening assurance over automated entries, revenue systems, core platforms, and technology-based processes, ISAS enhances the reliability of digital financial reporting and reinforces stakeholder confidence across the ecosystem,” it said in a note.
Also read: ICAI may provide financial data for India’s sovereign AI model
Follow us
