ICAI to Roll Out New Audit Standards for Digital-First Companies Soon
ICAI President Charanjot Singh Nanda announced that new audit standards will soon be rolled out to strengthen oversight of digital-first companies such as startups, fintech, and e-commerce firms
ICAI - Roll Out New Audit Standards - Digital-First Companies Soon - taxscan
ICAI - Roll Out New Audit Standards - Digital-First Companies Soon - taxscan
The Institute of Chartered Accountants of India (ICAI) is preparing to launch new Information Systems Audit Standards to improve the way audits are done for digital-first businesses. According to The Economics Times, president Charanjot Singh Nanda announced that these rules will mainly cover startups, fintech firms, and e-commerce companies, where technology is at the core of operations.
The aim of the new rules is to make audits more reliable in today’s digital world. They will help chartered accountants check for risks such as cybersecurity threats, data breaches, and IT system failures. Auditors will also be able to guide companies in reducing these risks.
Importantly, the standards won’t be limited to digital-first firms. Since most modern companies now rely on technology, the new rules will also apply to audits across other industries.
According to people familiar with the changes, the standards will provide a structured approach to evaluating IT systems. This means auditors will assess the integrity, confidentiality, and availability of the systems used by businesses.
The move comes at a time when compliance with data protection laws has become critical. Laws like India’s Digital Personal Data Protection Act and global rules such as the GDPR require businesses to follow strict IT and data security practices. The ICAI wants to ensure that chartered accountants are equipped to help businesses meet these compliance needs.
The new norms will also emphasize fraud detection, strong governance, and accurate financial reporting. In addition, they will help auditors expand their professional skills into areas such as system audits, IT governance, cybersecurity reviews, and ERP implementation audits.
India’s startup and fintech ecosystem is growing rapidly. The number of recognized startups jumped from just over 500 in 2016 to more than 1.57 lakh by 2024. The fintech sector is also booming, with its size expected to reach $420 billion by 2029. Against this backdrop, ICAI’s initiative is seen as a timely step to strengthen trust in digital businesses.
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