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Today marks the completion of 75 years of the Institute of Chartered Accountants of India (ICAI). Much has changed in this much time and perhaps one of the clear signs of that can be seen in the regulatory framework and compliances in India. As more is expected from CAs, how is the ICAI navigating some of these areas?
As you are aware, the government’s policies on ease of doing business have reduced regulatory compliances for companies. However, expectations from regulators such as ICAI have risen. To assist our members, ICAI has implemented various initiatives. Notably, we have introduced the Audit Quality Maturity Model to enhance auditor efficiency. Additionally, we have mandated 23 new audit standards effective from 1 July 2023, aimed at fraud detection and prevention. These efforts benefit all stakeholders—regulators, government and our members.
The ICAI also increase efforts in the ethical standards aspect, which are crucial in the CA profession. Could you elaborate on ICAI’s code of ethics?
The ICAI’s code of ethics integrates global standards from the International Federation of Accountants with India’s unique requirements. Our stringent ethical standards ensure integrity and professionalism among CAs. We maintain a zero-tolerance policy towards professional misconduct, conducting impartial inquiries to uphold the highest standards set by our predecessors.
If any member is found to be flouting the ethical standards set by the institute, strict action is taken. This includes initiating proceedings through our disciplinary committee. We ensure a fair and impartial inquiry process to uphold the highest standards of integrity and professionalism that our profession demands.
Let’s discuss technology and digitisation. How are AI and other technologies impacting the role of CAs?
Artificial intelligence can only thrive when complemented by human intelligence—what we call ‘alternate innovation’. CAs must equip themselves to tackle challenges posed by AI, machine learning and digitisation. Our curriculum includes data analytics and processing, and we offer specialised courses and continuing education programs focused on technology. The ICAI is committed to ensuring our members stay ahead in utilising evolving technologies to serve clients effectively.
It's encouraging to hear about ICAI’s proactive stance on technology. However, there’s concern among younger CAs about the affordability of advanced tech tools. How is ICAI addressing this issue?
Recognising this concern, ICAI has established the AI ICA committee to develop tools that will be provided to our members and students free of cost. Additionally, we plan to distribute ChatGPT licenses to equip members with cutting-edge technology without financial barriers. This approach aims to level the playing field, enabling all CAs to harness technology for client service and professional growth.
As businesses globalise, what steps is ICAI taking to ensure Indian CAs remain globally relevant?
Indian CAs are transitioning from nation builders to global partners. Knowledge of US GAAP, IFRS and international laws is crucial as Indian businesses expand globally. Our curriculum and certificate courses are tailored to train members in these areas, facilitating seamless integration into global accounting practices. ICAI encourages globalisation to enhance service delivery and relevance for our clients worldwide.
Looking ahead, what changes can younger CAs expect in their roles and skillsets as the profession evolves?
Future CAs must enhance technical knowledge, embrace technological advancements and understand international laws and standards like US GAAP. As pioneers in global accounting, these skills will empower them to navigate evolving professional landscapes and contribute significantly to client success.
The CA profession offers a comprehensive curriculum blending theoretical education with practical training under practising CAs. This unique blend prepares CAs to immediately add value to organisations upon qualification. Additionally, campus placements reflect increasing demand for CAs, making the profession highly attractive to new entrants.
Many successful leaders have a CA background. How does CA education contribute to leadership qualities?
As CA education covers both theoretical knowledge and practical skills, it enables professionals to understand and translate complex financial concepts into actionable strategies. Leaders such as Mr Kumar Mangalam Birla, who has headlined some of our forums in the past, credit their CA training for providing them with vision and strategic acumen, essential for driving organisational success.
As we conclude, what message would you like to share on the occasion of ICAI beginning its 76th year?
On this auspicious occasion, I urge all CAs to uphold the highest standards, embrace global best practices and continue serving our profession with dedication. Let us leverage our skills and knowledge to contribute to the nation's growth and prosperity.
