New Delhi: The Institute of Chartered Accountants of India (ICAI) has announced global networking guidelines for chartered accountancy firms in the country, its president-elect Prasanna Kumar D said on Wednesday. These guidelines will help domestic accountancy firms partner with global corporate networks, grow and evolve into global entities.
The guidelines set a framework for domestic firms to pool resources and share expertise with global networks. They also suggested that global networks register with ICAI with annual reporting requirements.
The industry body said the new guidelines will bring the functioning of global networks of chartered accountants under ICAI’s regulatory jurisdiction for their Indian operations. These firms must abide by the ICAI Code of Ethics and comply with Indian laws, including those relating to data protection.
Information system audit
ICAI has also developed a new set of standards to be followed by chartered accountants in conducting audits of information systems for businesses, the accounting rulemaker said in a statement. These standards are applicable from February and are to be adopted voluntarily for the first six months, after which they will be mandatory.
The Information Systems Audit Standards (ISAS) are expected to improve the way technology systems are audited in India’s digital economy. Chartered Accountants will gain a framework for auditing IT systems, data, cyber security and digital processes.
Accounting for small businesses
ICAI said a semi-professional course would be offered to prepare a skilled workforce to provide accounting services to small businesses across the country.
According to this year’s Union Budget announcement by Finance Minister Nirmala Sitharaman, the government will enable professional institutions such as ICAI, Institute of Company Secretaries of India and Institute of Cost Accountants of India to design short-term, modular courses and practical tools to develop the cadre of ‘Corporate Mitras’, especially in smaller towns.
These accredited para-professionals will help micro, small and medium enterprises (MSMEs) meet regulatory compliance requirements at an affordable cost.
ICAI said the training programs will be delivered in a hybrid mode with classroom study combined with online learning for wider reach. Although non-commercial graduates are eligible, candidates from a commercial background are likely to easily understand the content modules, he said.
ICAI has a nationwide network of five regional councils and 186 branches.