EIRC of ICAI organised an Interaction cum Felicitation Programme in Kolkata

Apeksha Sandesh Network
Feb 19, 2022  
EIRC of ICAI organised an Interaction cum Felicitation Programme in Kolkata

The Institute of Chartered Accountants of India (ICAI), established by an Act of Parliament in 1949 has proven its mark as an elite world class institution devoted to uphold the values of transparency, accountability and integrity. With over 3.40 lakh members and over 7 lakh students, ICAI is the world’s second largest accounting body. Through its 5 Regional Councils, 164 Branches, 44 Overseas Chapters & 29 Representative Offices, the Institute is taking forward its agenda of inclusive growth & continues to add glory to the profession.

The Eastern India Regional Council (EIRC) of The Institute of Chartered Accountants of India (ICAI) organised an Interaction cum Felicitation Programme on 16 February 2022 in Kolkata, where in more than 250 members attended from across the Eastern Region. CA. (Dr.) Debashis Mitra, President, ICAI, CA. Aniket S. Talati, Vice President, ICAI, CA. Ranjeet Kr. Agarwal, Council Member, ICAI, CA. Sushil Kr. Goyal, Council Member, ICAI, CA. Sunil Kr. Sahoo, Chairman, EIRC, CA. Ravi Kr. Patwa, Vice Chairman, EIRC, CA. Debayan Patra, Secretary, EIRC, CA Hari Ram Agarwal, Treasurer, EIRC, CA. Nitesh Kr. More, Member & Immediate Past Chairman, CA. Sumit Binani, Member & Past Chairman, EIRC & other Members of the Regional Council (EIRC) were present at the Interaction cum Felicitation Programme.

ICAI New Torch Bearers for the year 2022-23

The Council of the Institute of Chartered Accountants of India (ICAI) elected its new President  & Vice-President for the term 2022-23.

  1. (Dr.) Debashis Mitrahas been elected as thePresident and CA. Aniket Sunil Talati has been elected as the Vice-President of The Institute of Chartered Accountants of India w.e.f. February 12, 2022.

ICAI Mandates Peer Review for certain categories of Firms

The Council of ICAI has been working diligently to improve the quality of assurance services provided by its members. Empanelment of the reviewers through an assessment test was an initiative in that direction.  

ICAI has taken a historic decision to mandate the Peer Review mechanism for certain categories of firms rendering assurance services to specific class of entities and will go a long way in enhancing the audit quality. Realising the extent of wide range of the Practice units, some of which have multiple branches located in different parts of the country while others may be operating only at sole proprietor level, the roadmap has classified Practice Units into four categories and prescribed the implementation of peer review process over a four year time period. 

  • 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 and whose equity or debt securities are listed in India.
  • Over the next three years, the roll out would steadily cover firms providing assurance services to companies other than those listed on stock exchanges. The second phase is for the firms which have undertaken Statutory Audit of unlisted public companies having paid-up capital of not less than Rs.500 crore or having annual turnover of not less than Rs.1000 crore or having, in aggregate, outstanding loans, debentures and deposits of not less than Rs.500 crore as on the March 31st of immediately preceding financial year.
  • The third phase covers firms which have undertaken the Statutory Audit of entities and have raised funds from public or banks or financial institutions of over Rs. 50 crore during the period under review or of any body corporate including trusts which are covered under public interest entities. The last leg of the mandate covers firms conducting audits of branches of Public Sector banks. 

ICAI Partnering MSMEs to bolster them on the Global Map

With the growth of Indian economy and employment generation capabilities, the Micro, Small and Medium Enterprises (MSMEs) account for nearly half of India’s total exports thereby becoming the backbone of the nation’s economy even during the pandemic. The MSME Sector is an important pillar to carry forward the vision of ‘Atmanirbhar Bharat’ and face the economically challenging situation posed by the COVID-19 pandemic.

The Central and State Governments have launched many schemes to provide much-needed impetus for the revival of the MSMEs. However, to reach the end users, a simple and effective ecosystem which can assist MSMEs to benefit in a most optimized manner is necessary. ICAI believes that Chartered Accountants with close proximity to the businesses, industry and entrepreneurs can effectively work with the focus areas of MSMEs especially after being hit by the COVID-19 pandemic.

ICAI is receptive to the emerging challenges faced by the MSMEs & Start-ups and to address the issues faced by them, the ICAI has undertaken a number of initiatives to strengthen them in terms of competence and improve their visibility amongst the business community.

To enhance the capacity building of MSMEs & Startups, the ICAI has launched three very important initiatives for them namely: ICAI MSME Exchange, ICAI MSME Portal and Certificate course on MSME.

Enhancing Audit Quality

The Institute launched Audit Quality Maturity Model – Version 1.0 (AQMM v1.0) which includes the following dimensions of audit maturity organised into three sections:
a) Practice management – operation,
b) Human resource management, and
c) Practice management-strategic/functional

The objective of this Evaluation Matrix is for Sole proprietors and Audit firms to be able to self-evaluate their current level of Audit Maturity, identify areas where competencies are good /lacking and then develop a roadmap for upgrading to a higher level of maturity. The AQMM v1.0 is a cross-functional evaluation model for practicing firms covering engagement teams, firm leadership, IT helpdesks, human resources team, administration department, legal cell and the management information systems desk of the firm.

The AQMM v1.0 has been developed after deep international research on systems to enhance audit quality and widespread outreach activities to have inputs from stakeholders have been conducted across India. The aim of this capacity building measure of ICAI will significantly empower the firms to be able to improve their audit quality. The AQMM v1.0 is recommendatory initially and later on ICAI will review the date from which it would become mandatory.

Strengthening the Sustainability Reporting Ecosystem

ICAI is committed for being partner in achievement of UN Sustainable Development Goals (SDGs) 2030 Agenda and to strengthen the sustainability reporting ecosystem in the country. ICAI has taken various initiatives related to community(s), businesses, economy as well as individuals - both members and non-members, towards this endeavour:

  • Launched nationwide "ICAI Sustainability Literacy Drive" with the objective to widespread the awareness on importance and adoption of SDGs as well as Sustainability Reporting
  • Capacity Building and nurturing of skills of members through “Certificate Course on Business Responsibility and Sustainability Reporting”
  • Invited suggestions from members on how to reduce carbon emissions and identify “Champions of SDGs” and “Carbon Footprint Challenge”
  • Interacting with Industry Associations/ Stakeholders and Regulators for developing Framework for Disclosures on Climate Related Risks.
  • Engaging with and contributing to International bodies/ think tanks towards global sustainability practices and propagating Sustainability Reporting Requirements and Assurance Standards both for general purpose reporting and/or specifically for a Regulatory requirement

Multi Disciplinary Partnership Firms

In India, need for MDPs has been felt since long time. Formation of MDPs is need of the hour. MDPs are necessary for growth of Indian professional firms and Indian economy.  Provisions of CA Act, CS Act, CWA Act and Regulations framed under these Acts (as amended) allow formation of MDPs prior to February 2012. However, due to lack of necessary operational mechanism in the past, these provisions could not be implemented. ICAI has revised Form 18 and has framed Guidelines on MDPs which provide necessary operational mechanism for implementation of these provisions.

MDPs will enable Indian professional firms to build their capacity substantially as various multi-professionals having expertise and experience in their respective fields will be part of MDP. It will allow MDPs to provide complete package of services (audit as well as other services) to their clients. Clients will also benefit since they would no longer be required to approach different firms for their requirements.  

Chartered Accountants Benevolent Fund (CABF)- Relief in Corona Times

No profession is immune to the pandemic disruptions.  Many members and students have lost their life or their loved ones. The foundation of a functional community is built upon mutual benevolence and social understanding. From September 2020 onwards, a Scheme of financial assistance for treatment of Covid-19 was introduced by ICAI and since then about Rs. 10 crore has been processed/released to approx.. 800 beneficiaries towards treatment of the disease.