ICAI explained the practical challenges in accepting the Loksabha bill. The bill enhances the disciplinary mechanism followed by ICAI. December 2021 was the date of the introduction of the bill. The parliamentary committee headed by Jayant Sinha underscored the domain of ICAI. ICAI think that the domain gets affected because of the new course IIA and licensing of accountants. ICAI objected to the bill. The other two institutes ICOAI, and ICSI have different opinions. ICOAI supported the bill, and ICSI suggested the modification in the wording.
Appointment of non-CA for assessing the conduct of the professionals:
The placement of two non-accountants in the disciplinary body leads to misunderstanding. The professional only understands the code of conduct of the other professional. ICAI suggest the global member of the international federation of accountants. The ministry said that there is no government interference in the operations. The members are selected by the central government and institute as well.
Setting up of new course IIA equivalent to IIM and IIT:
In foreign countries like UK, USA and Canada, multiple authorities license the accountants. This participation is making the educational market competitive. In India, the market is a statutory monopoly as ICAI is working as the sole authority. In a place where the multiple bodies produce the accounting professionals, the competition and quality standards go up. The best practices followed by chartered accountants from India do not get recognition in the global market. The best practices of western countries get recognition in the global market. A certified professional accountant is a certificate offered to IIA students. IIA will work in connection with universities, IIM, IIT and national law universities.
Role of president and secretary:
The role played by the president, and the secretary is separated. The administrative conflict of interest happens because of the confusion about the role. So executive head and the president role stand in a separate roles. The committee said that the amendment brings greater efficiency to the decision making and functioning of the council. The duration to discuss the committee actions is three years. The election conducted for the vacancy in the council would be filled with the election. The objective of the committee is to enhance the member capacity and to bring changes to the practitioner’s portfolio and CA firms. The committee work for the social security of the members, finance, benefit schemes, and technology support.
Timeline for the cases:
The timeline of 90 days to 180 days is maintained for disciplinary cases. The institute objects that the cases require time and flexibility. The data from the previous cases reveal that it takes more than one year to clear the cases. Some cases are waiting for more than three years. The verdict states that the timeline is necessary and more than one year is not allowable.
Liability of firms:
ICAI argued that partners of the firm face unnecessary critics due to the permanent removal of firms. The verdict overruled the objection of the institute. It is because the partners are equally responsible for the activities completed by the firm. The process is for the repeated occurrence of professional misrepresentation.
Chartered accountant’s council committee:
In 2002, a committee chaired by Naresh Chandra examined the professional courses. The committee recommended a body like PCAOB in the US. ICAI objected to a body similar to PCAOB. The amendments that propel the quality checks are the peer review by the audit firms and disciplinary committee to all the three institutes. The primary functions of PCAOB are to register the accounting firms, adopt the auditing standards, inspect the firms, and investigate the accounting firms. In the year 2017, the government established a high-level committee under the leadership of MeenakshiDuttaGhosh. She and her views laid the basic points of the amendment bill. The bill is essential to bring transparency and competition to the profession.
If there is a change in the corporate and economic environment, it impresses the corporate events. During the discussion about the amendment, the DMK leader, Mr A. Raja said that the chairman of the bar council is a lawyer and the chairman of the medical council is a doctor. The chairman of an ICAI committee is a non-CA. The judgement of the professional disputes comes from own experience. So, domain knowledge is essential for the chairman role in the ICAI. The retired professor of IIM, Bangalore R Narayanaswamy, said that ICAI is the Indian version of the institute run by the UK. It deals with labour markets, high tax rates, uncompetitive capital, and form filling. He is the committee advisor for NFRA.
The exclusive schemes and software products for the members of the committee are as follows:
• The committee offers special software to the practising members for antivirus protection. The software is offered at a special price to chartered accountants.
• The committee for members in practice announced the SBI special scheme for the benefit of chartered accountants.
• The other insurance schemes for the members are as follows: ICICI health insurance, Super top-up, retail cyber policy, HDFC group poorna Suraksha, LIC term insurance with master policy, claim term insurance of LIC, The CCBMP arrange for the personal accident insurance with special premium, CCBMP arranges for the householder insurance with special premium, professional indemnity insurance scheme by new India assurance company limited. The new India assurance company also offer the motor vehicle insurance scheme, and office protection insurance scheme.
• Research map software, accounting software, account confirmation and reconciliation software, count magic software, practice management software, integrated product suite software, Papilio software, tally accounting software, EFF factor software, CORDL practice management software, and all in one accounting software are the different software models for the chartered accountants.
• Travel benefits comprise hotel bookings and travel arrangements. The Samsung electronics products are offered as a special offer for travel.
• The commercial publications are offered to the members.
• Max healthcare insurance offers health insurance.
• The diagnostic tests and healthcare tests are offered with discounts to the members.
• “Medanta” also provides health care services to the members.
• The committee also provides credit card facilities to the members.
The NASDAQ does not accept the audit report from India. Australia, the UK, the US, South Africa and Canada follow the best global practices. The committee support the changes to promote the auditing profession. The amendments get approval after mentioning all the clauses and getting votes 200 times. The RS secretariat officials say that after a long period amendments with substantial time were passed by the parliament with votes. The objections from ICAI are valid, and it is taken as valuable comments by the government.