NOT ADDING UP

For the first time in history, the government is attempting to disturb the autonomy of The Institute of Chartered Accountants of India, which is known as a strong professional body. The bill passed in Parliament to amend the Acts governing the apex body gives the government greater power over the regulation of the concerned professions. It is an ill-conceived proposal

- Shivanand Pandit

A bill that proposes to amend the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959, and the Company Secretaries Act, 1980, has been passed by the Lok Sabha on March 30, 2022, and the Rajya Sabha on April 5, 2022. The amendments will grant the government greater power over the regulation of these professions. At present, three institutesThe Institute of Chartered Accountants of India (ICAI), The Institute of Cost and Works Accountants of India (ICWAI), and The Institute of Company Secretaries of India (ICSI)-administer and manage accounting professions in India.

One major change among the several amendments suggested was to establish the Indian Institute of Accounting (IIA), although the bill was passed without any reference to it. The suggested IIAs are to provide a five-year undergraduate course in accounting and would add on a postgraduate course, subsequently. The curriculum would concentrate on specialised areas, such as forensic accounting, business analytics, cyber security, valuation, and international tax. Those who pass the course would be permitted to use the title Certified Professional Accountants (CPAs) and they will be given permission to function similar to chartered accountants.