The Institute of Chartered Accountants of India ( ICAI ) has taken a significant step towards fostering transparency and excellence in financial reporting with the release of its latest publication, “Commonly Found Errors in Reporting Practices.”
Published by The Publication & CDS Directorate on behalf of ICAI, the guide aims to dissect prevalent errors and illuminate best practices encountered during the evaluation process of the ICAI Awards for Excellence in Financial Reporting 2022-2023.
The Message from the President, ICAI – CA. Aniket Sunil Talati highlighted the importance of transparent reporting practices in the dynamic business landscape and encouraged stakeholders to leverage the guide for informed decision-making, compliance, risk management, and gaining credibility.
The preface penned down by CA. ( Dr. ) Anuj Goyal, Chairman, Research Committee emphasizes the role of ICAI in promoting best reporting practices. It also recognizes the dual role of the awards competition in recognizing efforts and providing benchmarks for improvement and expressed gratitude to leadership and stakeholders for their support.
The publication stresses the importance of annual reports as a guide for stakeholders and identifies the purpose of the publication – to dissect prevalent errors and illuminate best practices.
It covers factors such as compliance with standards, governance, stakeholder engagement, transparency, clarity, and conciseness.
The Key Takeaways are: –
Financial misstatements and inconsistencies in data presentation are dissected.
Emphasis on adherence to accounting standards and regulatory requirements for credibility.
Strong governance structures and internal controls are highlighted to prevent errors and frauds.
Actively engaging stakeholders for relevant and useful reporting.
Importance of transparent reporting and clear, concise communication.
A call for a collective commitment to advancing financial integrity and stakeholders’ trust.
This comprehensive guide, authored by the Research Committee, serves as a valuable resource for preparers, auditors, management, and all stakeholders involved in the financial reporting process.
The Institute of Chartered Accountants of India, ICAI encourages firms/practicing CAs to use this publication as a reference point for continuous improvement and excellence in reporting practices, contributing to the broader landscape of financial transparency and trust.
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