The Institute of Chartered

Accountants of India

Established by an
Act of Indian Parliament
The Chartered Accountants
Act, 1949
 Our Mission

The Indian Accountancy Profession will be the

Valued Trustee of World Class Financial
competencies, Good Governance and
Competitiveness
 Profile of ICAI
Was set up in 1949 under the Chartered
Accountants Act, 1949 even before adoption
of Constitution of India in 1950

Since then Profession has grown leaps and

bounds in terms of Membership
and Student base
 Profession in India
160K Members spread throughout the country and in different parts of the
world
Sizeable studentship base
Increase in percentage of members joining industry
Chartered Accountants are rendering services in every walk of economic life -
Politics, Judiciary, Government, Agriculture, Corporate, NGOs
Profession is dominated by small firms
Increasing trends towards consolidation
Government of India looks at ICAI as Partner in Nation Building
Technical Standards based on International Standards
Focus on Capacity Building in the emerging context
 ICAI Profile
Particulars No.
ORGANIZATIONAL
Regional Offices 5
Branches 126
Chapters Abroad 22
SPECIAL PURPOSE OUTFITS
CPE Study Circle 134
CPE Chapters 46
Reference Libraries 28
Accredited Institutions 273
MEMBERSHIP (000) 167
% in Practice 52%
STUDENTS (000) 726
 Role of ICAI
To regulate the profession of Accountancy
Education & Examination of Chartered Accountancy
Exercise Disciplinary Jurisdiction
Input on Policy matters to Government
Ensuring Standards of performance of Members
Formulation of Accounting Standards
Prescription of Engagement and Quality Control Standards
Laying down Ethical Standards
Continuing Professional Education
Financial Report Review
Monitoring Quality through Peer Review
Conducting Post Qualification Courses
 ICAI Network
Bahrain Abu Dhabi
Botswana Indonesia
Doha Jeddah
New Delhi

Dubai Kuwait
Port Moresby London
Kanpur

Calcutta (Papua New Guinea)

Riyadh Melbourne
Mumbai

Saudi Arabia Muscat

(Eastern province)
Chennai
Singapore Nairobi (Kenya)

Sydney New York

Decentralized Offices Toronto Nigeria

Zambia Ras-al-Khaimah
 Council

Committees

Standing Non-Standing
 The Central Council
Consisting of 40 Members

32 Elected Members

8 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
Standing Committees

Executive Finance
Committee Committee

Examination Disciplinary
Committee Committee
(Section 21D)
 Key Non-Standing Committees
Auditing & Committee Committee on
Accounting
Assurance on Banking, Accounting
Standards
Standards Insurance & Standards for
Board
Board Pension Local Bodies

Expert Board of
Research Editorial
Advisory Studies
Committee Board
Committee

Committee Corporate
Laws & Committee on Ethical
on Economic and
Corporate Standards
Information Commercial
Governance Laws & WTO Board
Technology Committee
 Key Non-Standing Committees
Committee for
Financial Board of
Peer Review Capacity Building
Reporting Discipline
Board of CA Firms & SMP
Review Board (Sec.21 A)
Committee

Committee for Internal Audit Vision &

Audit Perspective
Members in Standards
Committee Planning
Industry Board
Committee

Comm. On Fin. Committee on

ICAI-ICWAI- Committee on
Markets & Public Finance &
ICSI International
Investors Government
Committee Taxation
Protection Accounting
 Key Non-Standing Committees
Continuing
Direct Taxes Indirect taxes Professional
Committee Committee Education
Committee

Professional Disciplinary
Committee International
Development Affairs
Committee (Sec.21B)
Committee

The Institute is responsive to the emerging challenges and constitutes new

committees for effectively meeting these challenges

Research Unit: ICAI-Accounting Research Foundation

 Organization Structure
.

PRESIDENT Administration

Examination Disciplinary
VICE-PRESIDENT
M&SS A/C. & Finance

SECRETARY TO THE COUNCIL HRD, P & A Council

(Secretary to the Institute)

International Affairs

Technical Directorate
DEPARTMENTS COMMITTEES
Board of Studies

CPE Directorate
Institute Functions

Professional
Development

Regulatory Advisory
ICAI A Key National Body
Offers inputs to

Comptroller & Auditor General of India

Ministry of Corporate 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

 Important Initiative Undertaken to Align
with Changing Economic Order
Convergence with International Standards of Accounting and Auditing
Review and Revision of Education and training curriculum
Launch of Post Qualification Courses Capacity building of firms
Mandatory CPE Requirement
Peer Review Mechanism
Financial Report Review
Brand building Nationally and Internationally
Focused approach on issues relating to Corp. Governance.
Facilitating changes in regulatory frames.
Vigorous pursuance of Mutual Recognition Agreements.
Arrangement with Universities for graduation qualification to CA students
Facilitating accounting reforms in various areas
 Examples of Involvement of ICAI in
National Organizations
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

 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

Highlight of the New Scheme of Education & Training

I Common Proficiency Test

Compulsory

II 3 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 years and

passing of PCE
 Highlights 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
 Examination
One of the largest Accounting examination networks

Administrative conduct of examination and exam related process largely

computerized

Exams are held twice a year

Examination system considered to be of high standard & integrity worldwide

Has been lending expertise to accounting bodies in other countries

Accounting Standards Convergence with IFRSs

ICAI has decided to converge with IFRSs from accounting periods

commencing on or after 1st Aril 2011 for listed entities and other public
interests entities such as banks, insurance companies and large-sized entities

For smooth transition to the IFRSs, ICAI will take up the matter of
Convergence with NACAS, and various regulators such as the RBI, SEBI and
IRDA.

ICAI would also formulate its work-plan to ensure that IFRSs are effectively
adopted from 1st April 2011.

IFRSs-specific training programs will be organized for its members and others
concerned to prepare them to implement IFRSs.

IASB has also offered to help the ICAI in its endeavors towards Convergence
with IFRSs in India
 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

 Professional Ethics
Cardinal Principles
Service before self

Extends beyond the legal requirements

Some major highlights

Prohibition on other occupations Limit on fees for non-audit

assignments
Prohibition on solicitation
Prohibition on writing Books of
Prohibition on advertisement and
Accounts of Auditee company
Canvassing
Demarcation between External and
Prohibition on financial interest in
Internal Auditors
auditee company
Professional fees for audit and other
Restriction on number of audits
services received by a firm not to
exceed 40% of the gross annual fees
of the firm
 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

 Quality Control Initiative Peer Review
Peer Review Board of established in March 2002
Focus on:
Technical Standards compliance
Quality of Reporting
Office Systems and Procedures (attestation services only)
Staff training Programmes (attestation services only)
5567 Strong panel of Reviewers maintained
4234 Reviewers have undergone training
4020 Practice units have been issued Peer Review Certificates.
The Council of the Institute accepted the request of SEBI that audit of listed
companies shall be carried out by the auditors who have undergone Peer Review
Process
 Quality Review Board
Central Government has constituted Quality Review Board consisting of 11 persons.

Council of ICAI has nominated 5 members on QRB

Chairman and other 5 members have been appointed by Central Government

All services provided by members (Both attestation and non attestation will be
subject to Quality Review)

Disciplinary action if there is a deficiency in service

 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
 Financial Reporting Review

Financial Reporting Review Board constituted in 2002 to review general

purpose financial statements of certain enterprises

Boards 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
New Initiatives- Education & Training

Launch of new course for Accounting Technicians & IPCC

Introduction of concept E-Learning
Launch of Virtual Institute Project providing e-services to members and students
Recast of professional curriculum
Lectures through Gyan Darshan Channel for CPT & PCC Students
Three Months Residential Course for improving General Management &
Communication Skills
New Initiatives- Education & Training

Establishment of more than 100 computer labs to impart ITT Training

all over India

Grant of status of approved research supervisors by the Guru Govind

Singh Indraprastha University

Establishment of CA Student Benevolent Fund

Setting of Centre of Excellence for CA Students

MOU with Bharathiar University & Guru Jambheshwar University Of

Science And Technology (GJUS&T)
New Initiatives- Profession and Standards

Convergence to IFRS- By April 2011

Convergence to Clarity Project

Cap on fee for rendering services other than audit

Disciplinary mechanism framework

Focus on bridging the expectation gap
 International Presence

ICAI is founder member of IFAC, CAPA, SAFA and IIN

ICAI represented in :

IFAC - Board, SMP Committee, Developing Nations Committee,

International Public Sector Accounting Standards Board.

CAPA Board member

ICAI holds Permanent Secretariat, SAFA

SAFA - Chairmen and member of various Committees and Working

Groups
 International Initiatives
Opened New Chapters abroad- Singapore.

MoU with University of Djibouti and ICA Australia

Joint Declaration with The Bahrain Institute of Banking and Finance and The
Certified General Accountants Association of Canada

MRAs with Foreign Accountancy Bodies like ICAEW & CPA Australia.
 International Initiatives

MOU with College of Banking and Financial Studies, Oman For

institutionalization of accounting profession in Oman.

MOU with Center of Excellence for Applied Research and Training (CERT),
Dubai- To conceptualize and devise an international curriculum in
accountancy integrating local needs keeping in mind various requirements of
different levels of accountancy and audit professionals.

Technical assistance programme to CPA Mongolia and University of Djibouti

ongoing.

Implementation of Guidelines for Article Training Abroad.

International Initiatives Contd.

ICAI being consulted by IAASB in Audit Standards Setting and by IASB in

IFRS setting
Playing a lead role in the area of Developing Nations, SMPs and SMEs,
International Public Sector Accounting Standards, International Education
Standards
SAFA adopted ICAI curriculum as model
Student exchange programs held with ICAB, ICAP, ICAN and ICASL
Opened an Office in Dubai
Initiatives for recognition of ICAI qualification by accounting bodies in other
countries
 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
 ICAI - Virtual Institute

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
Institutes services taking into consideration security requirements.
The Institute of Chartered Accountants of India
[Set up by an Act of Parliament]

ICAI Bhawan, Indraprastha Marg, New Delhi 110 002.

Phone: 91-11-39893989, 30110210
Website: www.icai.org