<\/p>\n
News:<\/strong> Recently, <\/span>the government introduced bills to amend the three Acts of Parliament – the Institute of Chartered Accountants of India (ICAI), Institute of Cost Accountants of India and Institute of Company Secretaries of India. <\/span><\/p>\n These institutions govern a trio of business governance-related institutions<\/span>\u00a0<\/span><\/p>\n There have been a series of audit scandals<\/strong> in India Inc over the past two decades. For example, the Satyam accounting fraud, the IL&FS Scandal in 2018<\/span>\u00a0<\/span><\/p>\n The Parliamentary panel on finance advocated for changes in disciplinary action<\/strong>.\u00a0 The disciplinary action often falls short. There has been involvement of the auditors in some alleged financial scams. Thus created a need to revisit the existing disciplinary processes in the three institutes.”<\/span>\u00a0<\/span><\/p>\n The issues have been raised in the manner in which the legislation has been brought<\/strong> up by the government.\u00a0<\/span>\u00a0<\/span><\/p>\n The three entities already have internal disciplinary panels. The proposal mandates that the committees should include external members. But it would provide another source of potential conflict.\u00a0<\/strong><\/span>\u00a0<\/strong><\/p>\n Another proposal is to set up a new coordination body for the three bodies. It would be headed by a secretary-level officer. This increases the probability of government interference<\/strong> in the functioning and erosion of autonomy of these institutions.<\/span>\u00a0<\/span><\/p>\n It has been reluctant to improve the self-governance,<\/strong> the institutional systems and processes in line with global trends<\/span>\u00a0<\/span><\/p>\n The institute has been mostly led by family members etc. They don\u2019t improve or crack down on unethical staffing practices.\u00a0<\/span>\u00a0<\/span><\/p>\n In order to improve audit standards and promote professionalism in our chartered institutes, the centre should appoint chartered accountants to bank boards<\/strong> as nominee directors, giving them extra-jurisdictional responsibilities.\u00a0<\/span>\u00a0<\/span><\/p>\n Opening up the membership of these institutes to overseas audit firms, can go a long way in improving the performance of these institutes.<\/span>\u00a0<\/span><\/p>\n Source<\/span><\/b>: The post is based on an article \u201cAn unhelpful response to accountancy scandals<\/strong>\u201d published in the Live Mint<\/strong> on 31<\/strong><\/span>st March 22.\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" News: Recently, the government introduced bills to amend the three Acts of Parliament – the Institute of Chartered Accountants of India (ICAI), Institute of Cost Accountants of India and Institute of Company Secretaries of India. These institutions govern a trio of business governance-related institutions\u00a0 Why have these legislations been proposed?\u00a0 There have been a series… Continue reading An unhelpful response to accountancy scandals\u00a0<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10501],"class_list":["post-177013","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704702491},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/177013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=177013"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/177013\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=177013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=177013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=177013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Why have these legislations been proposed?<\/span><\/b>\u00a0<\/span><\/h5>\n
What are the issues in new legislation?<\/span><\/b>\u00a0<\/span><\/h5>\n
What are the issues in the functioning of the ICAI?<\/span><\/b>\u00a0<\/span><\/h5>\n
What is the way forward?
\n<\/span><\/b><\/h5>\n