New Delhi: The Institute of Chartered Accountants of India (ICAI) has notified global networking guidelines for the country’s chartered accountancy firms, its newly-elected president Prasanna Kumar D. said on Wednesday. These guidelines will help domestic chartered accountancy firms partner with global firm networks, grow and evolve into global entities.
The guidelines set the framework for domestic firms to pool resources and share expertise with global networks. They also proposed that global networks register with ICAI with annual reporting requirements.
The industry body said the new guidelines will bring the working of chartered accountants’ global networks under the regulatory jurisdiction of ICAI for their Indian operations. These firms must follow ICAI’s code of ethics and comply with Indian laws, including those related to data protection.
information system audit
ICAI has also developed a new set of norms to be followed by chartered accountants while conducting information system audits for businesses, the accounting rule maker said in a statement. These norms are applicable from February and are up for voluntary adoption in the first six months, after which they will be compulsory.
The Information Systems Audit Standards (ISAS) are expected to improve how technology systems are audited in India’s digital economy. Chartered accountants will get a framework to audit IT systems, data, cybersecurity and digital processes.
Accounting for small businesses
ICAI said a para-professional course will be offered to prepare a skilled workforce to render accounting services to small businesses across the country.
This follows the Union budget announcement this year by finance minister Nirmala Sitharaman that the government will facilitate professional institutions like 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 a cadre of ‘Corporate Mitras’, especially in smaller towns.
These accredited para-professionals will help micro, small and medium enterprises (MSMEs) meet compliance requirements at affordable costs.
ICAI said training programs will be delivered in a hybrid mode with classroom study combined with online learning for a wider reach. Though graduates from non-commerce graduates are eligible, candidates from a commerce background are likely to easily comprehend the content modules, it said.
ICAI has a nationwide network of five regional councils and 186 branches.
