ICAI to introduce focused initiatives aimed at Inclusive Growth, Sustainable and Resilient Global Ecosystem and Digitisation

ICAI - initiatives - Inclusive Growth - Sustainable and Resilient Global Ecosystem - Digitisation - Taxscan

The Institute of Chartered Accountants of India (ICAI) on Tuesday announced a series of initiatives aimed at further enhancing its mission of being a true partner in nation building, empowering students and upholding “Independence, Integrity and Excellence” of the Chartered Accountancy profession.

The ICAI had launched nationwide ICAI Sustainability Literacy Drive with an objective to make the process of sustainable development more feasible and operational by establishing a common focus of various distinct stakeholders. Continuing the endeavour, ICAI is partnering with SEBI in its initiative namely “Social Stock Exchange” and is in the process of finalising the Code of Conduct for Social Auditors who would function under the regulatory framework of Social Stock Exchange (SSE) and conduct Social Audits.

ICAI also plans to develop and issue a single Comprehensive Framework for Social Audit Standards for audit of Impact Reporting of Social Enterprises listed on SSE and area specific Social Audit Standards with respect to sub – themes of social impact, for example, poverty, nutrition etc. The standards would cover all aspects of assurance of impact reporting like, scope, engagement acceptance, basic principles, audit procedures, assurance report, documentation, etc. 

The activities of the Institute will continue to grow in significance especially in the light of the rise of the Digital Economy. Blockchain is believed to have the similar potential that the internet had in the 1990s. Just like the internet revolutionized the exchange of information, Blockchain is being said to revolutionize the exchange of value.

CA. (Dr.) Debashis Mitra, President, ICAI shared “ ICAI has been in the forefront of giving a boost to the digital economy of the country and has rolled out many initiatives like Digital Learning Hub, UDIN, Digital Competency Maturity Model, Self Service Portal and the Financial Literacy Drive. Further enhancing its digital drive by expanding the use of Blockchain Technology, ICAI plans to use Blockchain in finance and audit function, Decentralized finance (DeFi) and align Blockchain with other technology areas like Big Data, AI etc.

In the wake of popularity of virtual currencies or cryptocurrency, ICAI would be undertaking a detailed study about virtual currencies, a new phenomenon but the importance of which is catching up globally. A Research Group is being constituted by ICAI and shall be soon undertaking the task.

ICAI continuously work towards improving the quality of assurance services rendered by its members. Peer Review is one such initiative, through which the ICAI has been working diligently to improve the quality of Assurance Perception Services provided by its members.

Recently, the Council of ICAI has mandated Peer Review mechanism for certain categories of firms rendering assurance services to specific class of entities, which will go a long way in enhancing the audit quality.

A detailed roadmap has been laid down which classifies Practice Units into four categories and prescribes the implementation of peer review process. The implementation will begin, in a phased manner, from April 1, 2022 and will first apply to practice units (Firms) that have undertaken Statutory Audit of enterprises whose equity or debt securities are listed in India or abroad.

Over the next three years, the roll out would steadily cover firms providing assurance services to companies other than those listed on stock exchanges also including the ones conducting audits of branches of PSBs.

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