From Auditors To Business Strategists: Unlocking Multi-dimensional Role Of CAs: CA. Aniket S. Talati, President, ICAI

How has the role of the Chartered Accountant (CA) profession changed in India, particularly in terms of competencies and competitiveness?
Over the years, the role of CAs in India has become multi-dimensional in terms of their bouquet of services. Previously, CAs were primarily seen as bookkeepers, accountants, and auditors. However, their role has evolved over the past 75 years to become conscious keepers of the nation. Auditing and accounting for instance have extended beyond mere financial statements. CAs now provide assurance in numerous other areas, including income tax, internal audit, management audit, and other parts of a business-like non-financial reporting on sustainability .

As the industry and business landscape have evolved, so has the role of CAs. But one constant remains which is that CAs continue to be assurance providers. Additionally, CAs are not limited to the role of auditors or assurance providers. Many of them now hold positions within organisations in areas such as accounting, finance, and even operational roles. It is not uncommon to find CAs serving as CEOs, CFOs, or other high-level executives.

What new skills or competencies are becoming essential for Chartered Accountants to stay relevant in today's dynamic business environment?
When aspiring to enter or upskill in the profession of Chartered Accountancy, it is crucial to look at the areas that are going to be of significance. Technology plays a vital role in this profession, and it is essential to constantly monitor its advancements and embrace it as an enabler rather than a disruptor. The ever-changing nature of technology necessitates keeping up with technological skills. The Institute offers various skill enrichment programmes to ensure that both members and students have access to the latest technologies.

As Chartered Accountants the technical skills that we possess are, I believe, the best in the world in terms of the course curriculum that we run. However, staying relevant requires keeping up with evolving technology. To meet the requirements of the corporate world, we prioritise equipping our members and students with proficiency in various tools and platforms, like ERP and other accounting software.

How is the profession embracing advisory and consulting roles beyond the traditional ones?
In terms of moving forward, there are two aspects to consider. Traditionally, Chartered Accountants were primarily associated with accounts and finance. However, today, non-financial information is also gaining significant importance. Financial information includes items like financial statements, cash flow statement, price-earnings ratio (P/E), earnings per share (EPS), etc. On the other hand, non-financial information, such as sustainability, has become crucial. Chartered Accountants play a vital role in this area as well. So, considering the multidimensional nature of the profession, Cas contribute to various aspects.

Regarding advisory and consulting functions, Chartered Accountants have always excelled as trusted advisors to businesses. Their extensive experience and interactions with different industries provide valuable insights across sectors. Their advice is not limited to specific sectors but is instead sector-agnostic, offering a broad perspective. Additionally, their involvement in different areas of organisations, whether during articleship, employment, or as auditors, exposes them to diverse functions such as purchase-to-pay (P2P), revenue and receivables (R2R), and production. Consequently, they possess a comprehensive, 360-degree view of organisations, enabling them to serve as effective consultants and advisors.

Especially around fraud prevention, these strategic advising abilities make CAs vital contributors to corporate governance. Forensics is an important and evolving area of the profession. While we have standard regarding auditors responsibility to Consider Fraud since long, the institute has developed a robust forensic accounting and fraud detection course called FAFD. Additionally, we are introducing forensic accounting and investigation standards (FAIS) to address the expanding scope of forensics. Forensics now encompasses more than just financial institutions. Chartered Accountants specialise in various types of forensic activities.

After six years of the GST regime, what are the areas of fulfilment and improvement for you?The GST brought about a significant change in how professionals practise and how business is conducted in India. It consolidated various taxes into a single set, with the GST Council making decisions and many acts being subsumed under the GST. Like any new taxation system, there were expected challenges during the transition experienced by all stakeholders.

However, the governments (both state and central) have taken proactive steps to ensure that the ease of doing business is kept at the heart. There has been a continuous focus on improving the system's robustness and meeting the needs of businesses as well as business consultants and professionals.

With the advent of NFRA in 2018, what changes have occurred regarding auditing and accounting in ICAI's service and the overall CA ecosystem?
National Financial Reporting Authority (NFRA) has replaced the earlier advisory body NACAS that advised the government on accounting standards. The standard setting function has always been with the Institute and remains so. NFRA has also been granted regulatory responsibilities under the act. However, our relationship and collaboration with NFRA remain excellent. We coordinate and collaborate in the standard setting process. Proposed standards go through discussions at the NFRA board before being proposed to the government. With NFRA's involvement, we now enjoy a cordial and congenial relationship, fostering an environment for the standard setting process in the country.

Will there be a reduction in human intervention in auditing and accounting services due to AI and ML?
The statement that technology has reduced human intervention may not be fair. Today, even if you receive a notice from the Income Tax Department, you will need a CA to respond to it. The best people to assist you in answering questions in an income tax notice, whether it's a scrutiny or any other action under the Income Tax Act, are chartered accountants. Outsourcing your entire intelligence of replying to specific case scenarios to artificial intelligence machines may not be feasible because these notices or scrutinies are individual and transaction-based.

An AI or ML engine may not provide the same level of expertise as human professionals. Therefore, the role of professionals will continue to increase. Recently, there have been reports in the media highlighting the unreliability of AI engines, as they may not always provide accurate references. Hence, there will always be a need for someone with intelligence to assess and judge the output of artificial intelligence. AI can be an enabler that saves time for professionals and allows them to focus on higher-value tasks. By utilising technology for routine tasks, professionals can redirect their efforts towards advisory and consulting services, which are not only financially rewarding but also intellectually stimulating.

Your father was the former president of the ICAI. What remarkable memory out from his tenure would you like to see happen in your tenure?
Personally, I envision a more robust regulatory framework utilising technology within the institute. My goal is to establish a stronger support system for our professionals by providing them with top-notch audit tools, accessible documentation, and efficient practise management. 

Additionally, I believe it is vital to address the branding perspective of our profession, as it holds great significance to me. We have traditionally adhered to the notion that auditors solely communicate through their audit reports, thereby overlooking the remarkable achievements of our profession. Therefore, I aim to use the 75th anniversary of our institute as an opportunity for the entire membership and society to recognise and celebrate the contributions made by Chartered Accountants. Furthermore, we should collectively contemplate the future of the profession over the next 25 years, when our economy is expected to be developed and valued at 30–35 trillion dollars. This reflection should encompass the evolving roles that Chartered Accountants will undertake.