About ICAI.

1. The Institute of Chartered
Accountants of India
Established by an
Act of Indian Parliament
“The Chartered Accountants Act, 1949”

2. Our Mission
The Indian Accountancy Profession will be
the Valued Trustee of World Class
Financial competencies,Good Governance
and Competitiveness

3. Profile of ICAI
• Was set up in 1949 under the Chartered
Accountants Act, 1949 even before
adoption of Constitution of India in 1950
Since then Profession has grown leaps
and bounds in terms of Membership and
Student base

4. Profession in India
• 150K Members spread throughout the country and in
different parts of the world
• Sizeable studentship base
• Increase in percentage of members joining industry
• Chartered Accountants are rendering services in every walk
of economic life - Politics, Judiciary, Government,
Agriculture, Corporate, NGOs
• Profession is dominated by small firms
• Increasing trends towards consolidation
• Government of India looks at ICAI as Partner in Nation
Building
• Technical Standards based on International Standards
• Focus on Capacity Building in the emerging context

5. Size of Firms
• Vast majority SMPs with SME clients
• Cost and time vis-a-vis detailed requirements of Standards
• We do not believe in separate auditing Standards for audit of SMEs
• alternative between “audit” and “review” likely to create confusion,
not much value addition seen w.r.t clients as well as costs and
risks involved vis-a-vis remuneration
Size of Indian Accountancy Firms
27
sole proprietor
102
2-5 partners
989
6-10 partners
12635 11-15 partners
16-20 partners
31950

6. ICAI Profile
Particulars No.
ORGANIZATIONAL
Regional Offices 5
Branches 118
Chapters Abroad 21
SPECIAL PURPOSE OUTFITS
CPE Study Circle 131
CPE Chapters 43
Reference Libraries 33
Accredited Institutions 273
MEMBERSHIP (‘000) 150
% in Practice 53%
STUDENTS (‘000) 520

7. Role of ICAI
• To regulate the profession of Accountancy
• Education & Examination of Chartered Accountancy
• Exercise Disciplinary Jurisdiction
• Input on Policy matters to Government
• Ensuring Standards of performance of Members
• Formulation of Accounting Standards
• Prescription of Engagement and Quality Control Standards
• Laying down Ethical Standards
• Continuing Professional Education
• Financial Report Review
• Monitoring Quality through Peer Review
• Conducting Post Qualification Courses

8. ICAI Network
Chapters Abroad
• Abu Dhabi
• Bahrain
• Botswana
• Doha
• Dubai
• Indonesia
• Jeddah
• Kuwait
• London
• Melbourne
• Muscat
• Nairobi (Kenya)
• New York
• Nigeria
• Port Moresby (Papua New Guinea)
• Riyadh
• Saudi Arabia (Eastern province)
• Singapore
Decentralized Offices • Sydney
• Toronto
• Zambia

9. C o u n c il
C o m m itte e s
S ta n d in g N o n - S ta n d in g

10. The Central Council
• Consisting of 40 Members
– 32 Elected Members
– 8 Nominated by Central Government
• Term: Three years
• Headed by President
– Elected by the Council for one year term
• Empowered to frame Regulations under the Act and to
constitute necessary standing and non-standing Committees

11. Standing Committees
Executive Finance
Committee Committee
Examination Disciplinary
Committee Committee
(Section 21D)

12. Key Non-Standing Committees
Auditing & Committee on
Accounting Committee on Committee on
Assurance Accounting
Standards Insurance & Economic and
Standards Standards for
Board Pension Commercial Laws
Board Local Bodies
Expert
Research Board of Corporate Laws
Advisory Editorial Board
Committee Studies Committee
Committee
Committee on Committee Comm. On Fin.
Committee Ethical
on Trade Markets &
Information on Corporate Standards
Laws Investors’
Technology Governance Board
& WTO Protection

13. Key Non-Standing Committees - 2
Perspective
Financial Reporting Board of Discipline Peer Review Capacity Building Planning
Review Board (Sec.21 A) Board Committee Committee
Committee for Internal Audit ICAI-ICWAI-ICSI
Audit Committee Vision Committee
Members in Industry Standards Board Committee
Committee on Management Committee on
Public Finance Diamond Jubilee
Government Accounting International
Committee Committee
Accounting Committee Taxation

14. Key Non-Standing Committees - 2
Committee for
Representation Infrastructure High Powered
HR & Admin Small & Medium
Committee Committee Committee
Practitioners
Continuing
Professional
Direct Tax Indirect tax Professional International
Development
Committee Committee Education Affairs Committee
Committee
Committee
Disciplinary
Committee (Sec.21B)
The Institute is responsive to the emerging challenges and constitutes
new committees for effectively meeting these challenges
Research Unit: ICAI-Accounting Research Foundation

15. Organization Structure
.
P R E S ID E N T A d m in is t r a t io n
E x a m in a t io n D is c ip lin a r y
V I C E -P R E S I D E N T
M &SS A / C . & F in a n c e
H R D, P & A C o u n c il
S E C R E T A R Y T O T H E C O U N C IL
(S e c r e t a r y t o t h e In s t it u t e )
I n t e r n a t io n a l A f f a irs
T e c h n ic a l D ir e c t o r a te
DEPARTM ENTS C O M M IT T E E S
B o a r d o f S t u d ie s
C P E D ir e c t o r a te

16. Institute Functions
Professional
Development
Advisory
Regulatory

17. ICAI – A Key National Body
Offers inputs to
• Comptroller & Auditor General of India
• Ministry of Company Affairs, Govt. of India
• Reserve Bank of India
• Securities and Exchange Board of India
• Central Board of Direct Taxes
• Insurance Regulatory and Development Authority
• Departments of Central and State Governments
• Departments of Public Enterprises

18. Important Initiative Undertaken to
Align with Changing Economic Order
• Convergence with International Standards of Accounting and
Auditing
• Review and Revision of Education and training curriculum
• Launch of Post Qualification Courses Capacity building of
firms
• Mandatory CPE Requirement
• Peer Review Mechanism
• Financial Report Review
• Brand building – Nationally and Internationally
• Focused approach on issues relating to Corp. Governance.
• Facilitating changes in regulatory frames.
• Vigorous pursuance of Mutual Recognition Agreements.
• Arrangement with Universities for graduation qualification to
CA students
• Facilitating accounting reforms in various areas

19. Examples of Involvement of ICAI in National
Organizations
• Drafting of Income Tax Laws
• Drafting of Competition Law
• Drafting of Company Law
• Capital Market – Development and Regulation
• Corporate Governance
• Accounting & Utilization of Governmental resources
• WTO & GATS
• Import – Export Policy
• Commercial and Economic Legislations
• Non Banking Financial Companies

20. Education and Training
• Distant Mode of Education
• Education Through Accredited Institutions and Branches
• Meets the requirements of international educational
pronouncements of IFAC
• Comprehensive theoretical and practical curriculum
• Continuous review of the curriculum

21. Highlight of the New Scheme of Education &
Training
I Common Proficiency Test
– Compulsory
II 3½ years of Practical Training concurrent with components of
Professional Competence Examination (PCE) and Final
– Complete 100 hours of Compulsory Computer Training before
appearing for PCE.
– Undergo General Management & Communication Skills (GMCS)
after 18 months of practical training and completion of PCE
– Eligible to appear for Final Examination on completion of 3 ½ years
and passing of PCE

22. Highlights of the New Syllabus
Financial Reporting
– Corporate Financial Reporting
– IFRS based Financial Reporting
– US GAAP based Financial Reporting
Strategic Management
– Study of Business Environment
– Understanding Strategic Planning and Analysis
– Ability to understand and formulate Functional Strategies
Financial Management
Advanced Management Accounting
Information Technology and Systems Control
Business Ethics

23. Examination
• One of the largest Accounting examination networks
• Administrative conduct of examination and exam related
process largely computerized
• Exams are held twice a year
• Examination system considered to be of high standard &
integrity worldwide
• Has been lending expertise to accounting bodies in other
countries

24. Accounting Standards Convergence with
IFRSs
• ICAI has decided to converge with IFRSs from accounting periods
commencing on or after 1st Aril 2011 for listed entities and other
public interests entities such as banks, insurance companies and
large-sized entities
• For smooth transition to the IFRSs, ICAI will take up the matter of
Convergence with NACAS, and various regulators such as the RBI,
SEBI and IRDA.
• ICAI would also formulate its work-plan to ensure that IFRSs are
effectively adopted from 1st April 2011.
• IFRSs-specific training programs will be organized for its members
and others concerned to prepare them to implement IFRSs.
• IASB has also offered to help the ICAI in its endeavors towards
Convergence with IFRSs in India

25. Convergence with IFRSs in India
• Recognizing the need for convergence in India, Council of
ICAI decided to converge with IFRSs from accounting
periods starting from 1st April 2011 for:
– for public interest entities including listed entities, banks,
insurance entities and other large sized entities,
– subject to its confirmation by government and other legal
and regulatory authorities

26. Strategy for Implementing Convergence
with IFRSs in India
For Implementing Convergence with IFRSs from 1st April 2011,
ICAI has identified following issues to be resolved:
• Cooperation from Legal and Regulatory Authorities
• Level of preparedness of Industry
• Education and Training of auditors and prepares of Financial
Statements
• Work Plan of ASB for smooth transition to IFRSs
• Conceptual Issues with IFRSs

27. Constitution of the Group on
Implementation of Convergence
For resolving various issues, ASB of ICAI has Constituted Group on
Implementation of Convergence with IFRSs, which constituted
following subgroups:
• Sub-Group for preparing the Work Plan of ASB and liaising with the IASB
• Sub-Group for approaching the Government and Regulatory Authorities
• Sub-Group for liaising with the Industry Associations
• Sub-Group on Education and Training on IFRSs

28. Engagement & Quality Control
Standards
On the Road to Convergence
• AASB founder member of IFAC
• Auditing standards based to the extent possible on
corresponding International Standards (IS) of
International Auditing and Assurance Standards Board
(IAASB) - 35 Auditing Standards till 2006
• Chalked out timeline for bridging gap in convergence with
IS under IAASB Clarity Project
• Hopes to achieve full convergence by December 2010.

29. Engagement & Quality Control
Standards
• AASB’s response to IAASB Clarity Project (2006 till
date):
– Revised & more rigorous Due Process
– Revised Framework & Preface
– AASs renamed & renumbered in line with IAASB terminology –
ENGAGEMENT STANDARDS:
• Standards on Auditing
• Standards on Review Engagements
• Standards on Assurance Engagements
• Standards on Related Services
– Mother Standard on Quality Control
– Revised/ new Standards on Fraud, Audit Planning & Risk-based
Audits
– Many new/ revised Standards in pipeline

30. Engagement & Quality Control
Standards
• 32 Guidance Notes on Auditing issues
• 04 Industry specific Guidance Notes:
* Banking * General Insurance
* Stockbrokers * Life Insurance
• Milestones
– AAS 12, Responsibility of Joint Auditors
– Statement on the Companies (Auditor’s Report) Order, 2003
– Study on Money Laundering
– Implementation Guide to Quality Control Standard
– Guide to Audit of SMEs
– Backgrounder on Auditing Standards
– Implementation Guide on Risk-based Audit (in the pipeline)
– Study on Basel II
– Technical Guide on E-commerce – Implications for Auditors

31. Research and CPE
• Commitment to advancement of knowledge in accountancy,
auditing, taxation and allied areas
• Published about 150 Publications
• Expert Opinions on Applicability of Standards
• 20 Compendiums over 1000 opinions
• More than 50 CPE materials published
• 3000 CPE programs held annually
• ICAI-ARF to promote research on contemporary issues
• Publishes a monthly journal with more than 175,000
circulation

32. Professional Ethics
• Cardinal Principles
– Service before self
– Extends beyond the legal requirements
• Some major highlights
• Prohibition on other occupations • Limit on fees for non-audit
• Prohibition on solicitation assignments
• Prohibition on advertisement and • Prohibition on writing Books of
Canvassing Accounts of Auditee company
• Prohibition on financial interest in • Demarcation between External
auditee company and Internal Auditors
• Restriction on number of audits • Professional fees for audit and
other services received by a
firm not to exceed 40% of the
gross annual fees of the firm

33. Professional Development
• Identifying Role of Profession in emerging areas
• Developing Practice Areas
• Upgrading and updating the knowledge and skill sets
• Developing technical material to facilitate practice in new
areas
• Considered as critical in the changed Scenario

34. Quality Control Initiative – Peer Review
• Peer Review Board of established in March 2002
• Focus on:
– Technical Standards compliance
– Quality of Reporting
– Office Systems and Procedures (attestation services only)
– Staff training Programmes (attestation services only)
• 3378 Strong panel of Reviewers maintained
• 2430 Reviewers have undergone training
• 1231 Practice units have been issue Peer Review Certificates
• The Council of the Institute accepted the request of SEBI that
audit of listed companies shall be carried out by the auditors who
have undergone Peer Review Process

35. Quality Review Board
• Central Government has constituted Quality Review Board
consisting of 11 persons.
• Council of ICAI has nominated 5 members on QRB
• Chairman and other 5 members have been appointed by
Central Government
• All services provided by members (Both attestation and non
attestation will be subject to Quality Review)
• Disciplinary action if there is a deficiency in service

36. Peer Review
• Peer Review Board established in March 2002
• Reviews by Board to ensure
– compliance with technical standards; and
– existence, compliance and adherence to quality control
– policies and procedures
• Findings would not have any relationship with the
disciplinary proceedings

37. Financial Reporting Review
• Financial Reporting Review Board constituted in 2002 to
review general purpose financial statements of certain
enterprises
• Board’s findings would form basis for :
– initiating action against auditor concerned; and
– informing irregularity to relevant regulatory authority
• Board seeks general purpose financial statements of top
500 companies in India on yearly basis

38. Code of Ethics
PARTICULARS ICAI CODE IFAC CODE
(a) Approach Rule based. Principle based
(b) Framework Based on legal framework as per CA Act, Conceptual framework based
1949. on general principles.
(c) Authority Authority founded in specific Statute. It suggests basic principles in
modular form along with
examples without any
statutory authority.
(d ) Enforceability Inbuilt mechanism for its enforcement is Professional Accountants to
in place. see enforceability themselves.

39. New Initiatives- Education & Training
• Launch of new course for Accounting Technicians & IPCC
• Introduction of concept E-Learning
• Launch of Virtual Institute Project providing e-services to members
and students
• Recast of professional curriculum
• Lectures through Gyan Darshan Channel for CPT & PCC Students
• Three Months Residential Course for improving General
Management & Communication Skills
• Establishment of more than 100 computer labs to impart ITT
Training all over India
• Grant of status of approved research supervisors by the Guru
Govind Singh Indraprastha University
• Establishment of CA Student Benevolent Fund
• Setting of Centre of Excellence for CA Students
• MOU with Bharathiar University & Guru Jambheshwar University Of

40. New Initiatives- Profession and
Standards
• Convergence to IFRS- By April 2011
• Convergence to Clarity Project
• Cap on fee for rendering services other than audit
• Disciplinary mechanism framework
• Focus on bridging the expectation gap

41. International Presence
• ICAI is founder member of IFAC, CAPA, SAFA and IIN
• ICAI represented in :
– IFAC - Board, Education Standards Board, SMP Committee,
Developing Nations Committee, International Public Sector
Accounting Standards Board, Professional Accountants in
Business Committee
– CAPA – President & Board member
– ICAI holds Permanent Secretariat, SAFA
– SAFA - Chairmen and member of various Committees and
Working Groups

42. International Initiatives
• Opening up of new Chapters abroad- Oman, New York &
Singapore.
• MRAs with Foreign Accountancy Bodies like ICAEW & CPA Australia.
• MOU with College of Banking and Financial Studies, Oman – For
institutionalization of accounting profession in Oman.
• MOU with Center of Excellence for Applied Research and Training
(CERT), Dubai- To conceptualize and devise an international
curriculum in accountancy integrating local needs keeping in mind
various requirements of different levels of accountancy and audit
professionals.
• Technical assistance programme to CPA Mongolia and University of
Djibouti ongoing.
• Implementation of Guidelines for Article Training Abroad.

43. International Initiatives Contd.
• ICAI being consulted by IAASB in Audit Standards Setting
and by IASB in IFRS setting
• Playing a lead role in the area of Developing Nations, SMPs
and SMEs, International Public Sector Accounting
Standards, International Education Standards
• SAFA adopted ICAI curriculum as model
• Student exchange programs held with ICAB, ICAP, ICAN
and ICASL
• Opened an Office in Dubai
• Initiatives for recognition of ICAI qualification by
accounting bodies in other countries

44. ICAI - Virtual Institute
• ‘Virtual Institute’ integrates all the regions and offices to present a
unified view of the operations of the entire Institute through a
single integrated enterprise system
• It FULFILLS the members and students right to convenience,
comfort and make the benefits of Information Technology (IT)
available to the members and students for rendering the Institute
services online anywhere-anytime
• With this all operational functions of the institute have been
brought onto a common intranet with seamless flow and availability
of information
• Towards Tomorrow  Today
– ICAI started IT initiative towards a bright future and is in it today
• ICAI Portal is effectively used to make a repository of information
and knowledge accessible to the members, students and
employees at the click of a button.
• The portal brings dynamic features to the content. It functions as a
Global Gateway to ICAI. The portal’ provides a single interface to
users for accessing Institute’s services taking into consideration
security requirements.

45. The Institute of Chartered Accountants of India
[Set up by an Act of Parliament]
“ICAI Bhawan”, Indraprastha Marg, New Delhi – 110 002.
Phone: 91-11-39893989, 30110210
Website: www.icai.org