I am writing this page just after the conclusion of the three-day International Conference on Accounting Profession – Shining Bridge Between Global Economies held in the pink city of Jaipur as part of the ongoing Diamond Jubilee celebrations of the Institute. It was a memorable assembly of highly admired experts in the field, besides the leaders in trade and industry. The conference focused on topical issues like governance, financial engineering, regulatory compliance, value creation and corporate social responsibility. The conference also offered a good opportunity to the participants to enhance their knowledge and widen their vision.
This conference was organized to coincide with the meetings of the Board of South Asian Federation of Accountants (SAFA) and Board of Confederation of Asian Pacific Accountants (CAPA) in which representatives from more than 30 countries participated. This helped in achieving a global reach for India’s chartered accountancy profession. The leaders of the accountancy profession from the various parts of the world could see the competence level of the chartered accountancy profession in India. The conference was very well attended. An idea of the success of the conference can be gauged from the fact that more than 3000 delegates including more than 200 delegates from abroad participated in it. And it was addressed by more than 40 learned speakers including more than 15 speakers from abroad.
Historic MoU with ICAEW recognizing each other’s qualifications
Friends, I have always wondered why the Indian Chartered Accountancy course, despite being so comprehensive and so tough as compared to any other chartered accountancy course of the world, is not recognized by other accounting bodies of the world. Accordingly, immediately after assuming the office of the President of the Institute in February, 2008, I started working on this issue.
I am glad to inform you that my efforts in this direction have started showing results. I, on behalf of the Institute of Chartered Accountants of India, signed a memorandum of understanding (MoU) on 20th November, 2008 at Jaipur with Mr. Martin Hagen, Deputy President of the Institute of Chartered Accountants in England & Wales (ICAEW), who specially flew down from London for this purpose. Hon’ble Union Minister of Corporate Affairs Shri Prem Chand Gupta witnessed this historic development. As per the memorandum of understanding reached, members of ICAI with two years of post-qualification experience will be eligible for ICAEW membership on passing ICAEW’s one paper on Case Study. However, members with less than two years experience will be required to pass two additional papers i.e. Business Change and Business Reporting.
The members of ICAEW who are trained in public practice will be eligible for ICAI membership subject to passing ICAI’s four papers on Taxation; Law, Ethics & Communication; Information Technology & Strategic Management; and Auditing & Assurance. Details and the procedure have been published elsewhere in this issue of the journal and are also available on the Institute’s website. In the era of globalization, the coming together of two largest chartered accountancy bodies in the world heralds a new era for the accountancy profession. This agreement will facilitate mobility of members across the borders. It goes without saying that the signing of this MoU is a recognition of the high level of the education and training which a student of ICAI undergoes before he becomes a full-fledged member of it.
Convocation Ceremony at Mumbai and Delhi
I am delighted to inform you that we have recently initiated the practice of organizing convocation for new Chartered Accountants. The first such convocation for the Western Region was held on 9th November, 2008 at Mumbai and the second convocation for the Northern Region was held on 16th November, 2008 at Delhi, where I handed over Membership Credentials to more than 1200 young torch bearers of the profession. It was heartening to feel the sense of pride and camaraderie among the new entrants to the profession. I am sure this new practice will in time become a tradition and will flourish in days to come and will strengthen professional bonding, sense of belongingness to the Institute and also help in brand building.
National Cultural and Sports Competitions
To create awareness among school students about the choice of their career and encourage them to join CA course, a national debate competition is going on for students of Class XI and Class XII in different parts of the country. I am happy to inform you that so far this national debate competition has been held at more than 55 branches in the country in which more than 12,000 students of 600 schools have participated. The feedback which I have received from the branches is very encouraging. This debate competition has helped the Institute to reach out not only to the students, but also to their parents and teachers, besides sensitizing the students on various contemporary issues on which the debate is being held.
Continuing this process further and in order to encourage CA students to take part in extra- curricular activities, it has been decided to organize a National Cultural Competition in various streams such as dance, drama, music - vocal and instrumental, etc. at each of our branches. Similarly, to encourage sports activities amongst CA students, it has been decided to organize a National Sports Competition (carom, chess, tennis, badminton, table tennis, etc.) at each of our branches. This competition will be open to all CA students including CPT students. Winners at the branch level will participate in the competition at the regional level and thereafter at the national level.
I hope you will agree that encouraging cultural and sports activities among CA students will go a long way in helping them to develop an all round personality. It will also show to the world that CA students do not lag behind in these areas. And possibly in the years to come, many of our students and members will bring laurels to the Institute by excelling in cultural and sports activities.
Three-months Residential Programme for Students
I am glad to tell you that a major milestone achieved this year has been the starting of the three months’ residential programme on Soft Skills Development for CA students. The first two batches of this programme were conducted with the help of National Institute of Financial Management, Faridabad, benefiting 107 Chartered Accountancy students. Encouraged by the response, the third Soft Skills Development programme is scheduled to start from December 1, 2008 at Jaipur. The venue of this programme is the LNM Institute of Information Technology, Jaipur, which is spread over 100 acres and has a calm and serene academic environment. Among other things, it will also help in enlarging the geographical spread of the programme. It would be my endeavour to replace the present 15-day General Management and Communications Skills course by this 3-months residential programme so that all students are able to reap its benefit
May I also inform you that work on the ICAI’s own residential Centre of Excellence at Jaipur, the foundation stone of which was laid in September, 2008, is going on and I am confident that this Centre of Excellence will become operational by next year. This will help us in making the 3-month residential course mandatory for all CA students before they are admitted as members of the Institute.
Residential Course for Senior Members at Hyderabad
The aforementioned three-month residential programme for students and newly qualified members was started to groom chartered accountants into a class of matchless professionals. However, at the same time there is a pressing need to ensure that senior members who did not have the opportunity of undergoing such a residential course, both in industry and practice, also have an opportunity to enhance their competitive competence and communication skills as well as their practical skills and professional and leadership abilities. Accordingly, it has been decided to start residential programmes of short duration for senior members as well and to have a Centre of Excellence for them. I am very happy to inform you that the ICAI’s first such Centre of Excellence is going to be inaugurated at Hyderabad by the end of December, 2008.
This Centre of Excellence at Hyderabad is spread over about three acres of land and is being equipped to have world-class facilities for holding a top level residential programme. This Centre of Excellence at Hyderabad has been conceptualized to be a landmark in the field of education and training, a learning and research hub for accountancy in India, and also a centre to help formulate economic and financial policies. In the Diamond Jubilee year of its service to the nation, this will indeed be yet another feather in the ICAI’s cap.
Revamped Online Payment System
It has been our constant endeavour to improve the functioning of the systems in the Institute to suit modern-day requirements. As part of this process, the online payment system of the Institute has been totally revamped to facilitate easy and real time online payments towards membership fees, enrollment of members, registration of students, registration for examination, ordering of publications, registration for conferences/seminars, registration for elearning courses, donations if any and many other services being offered by the Institute. I may assure you that the new online services portal is highly reliable and user-friendly payment gateway.
This conference was organized to coincide with the meetings of the Board of South Asian Federation of Accountants (SAFA) and Board of Confederation of Asian Pacific Accountants (CAPA) in which representatives from more than 30 countries participated. This helped in achieving a global reach for India’s chartered accountancy profession. The leaders of the accountancy profession from the various parts of the world could see the competence level of the chartered accountancy profession in India. The conference was very well attended. An idea of the success of the conference can be gauged from the fact that more than 3000 delegates including more than 200 delegates from abroad participated in it. And it was addressed by more than 40 learned speakers including more than 15 speakers from abroad.
Historic MoU with ICAEW recognizing each other’s qualifications
Friends, I have always wondered why the Indian Chartered Accountancy course, despite being so comprehensive and so tough as compared to any other chartered accountancy course of the world, is not recognized by other accounting bodies of the world. Accordingly, immediately after assuming the office of the President of the Institute in February, 2008, I started working on this issue.
I am glad to inform you that my efforts in this direction have started showing results. I, on behalf of the Institute of Chartered Accountants of India, signed a memorandum of understanding (MoU) on 20th November, 2008 at Jaipur with Mr. Martin Hagen, Deputy President of the Institute of Chartered Accountants in England & Wales (ICAEW), who specially flew down from London for this purpose. Hon’ble Union Minister of Corporate Affairs Shri Prem Chand Gupta witnessed this historic development. As per the memorandum of understanding reached, members of ICAI with two years of post-qualification experience will be eligible for ICAEW membership on passing ICAEW’s one paper on Case Study. However, members with less than two years experience will be required to pass two additional papers i.e. Business Change and Business Reporting.
The members of ICAEW who are trained in public practice will be eligible for ICAI membership subject to passing ICAI’s four papers on Taxation; Law, Ethics & Communication; Information Technology & Strategic Management; and Auditing & Assurance. Details and the procedure have been published elsewhere in this issue of the journal and are also available on the Institute’s website. In the era of globalization, the coming together of two largest chartered accountancy bodies in the world heralds a new era for the accountancy profession. This agreement will facilitate mobility of members across the borders. It goes without saying that the signing of this MoU is a recognition of the high level of the education and training which a student of ICAI undergoes before he becomes a full-fledged member of it.
Convocation Ceremony at Mumbai and Delhi
I am delighted to inform you that we have recently initiated the practice of organizing convocation for new Chartered Accountants. The first such convocation for the Western Region was held on 9th November, 2008 at Mumbai and the second convocation for the Northern Region was held on 16th November, 2008 at Delhi, where I handed over Membership Credentials to more than 1200 young torch bearers of the profession. It was heartening to feel the sense of pride and camaraderie among the new entrants to the profession. I am sure this new practice will in time become a tradition and will flourish in days to come and will strengthen professional bonding, sense of belongingness to the Institute and also help in brand building.
National Cultural and Sports Competitions
To create awareness among school students about the choice of their career and encourage them to join CA course, a national debate competition is going on for students of Class XI and Class XII in different parts of the country. I am happy to inform you that so far this national debate competition has been held at more than 55 branches in the country in which more than 12,000 students of 600 schools have participated. The feedback which I have received from the branches is very encouraging. This debate competition has helped the Institute to reach out not only to the students, but also to their parents and teachers, besides sensitizing the students on various contemporary issues on which the debate is being held.
Continuing this process further and in order to encourage CA students to take part in extra- curricular activities, it has been decided to organize a National Cultural Competition in various streams such as dance, drama, music - vocal and instrumental, etc. at each of our branches. Similarly, to encourage sports activities amongst CA students, it has been decided to organize a National Sports Competition (carom, chess, tennis, badminton, table tennis, etc.) at each of our branches. This competition will be open to all CA students including CPT students. Winners at the branch level will participate in the competition at the regional level and thereafter at the national level.
I hope you will agree that encouraging cultural and sports activities among CA students will go a long way in helping them to develop an all round personality. It will also show to the world that CA students do not lag behind in these areas. And possibly in the years to come, many of our students and members will bring laurels to the Institute by excelling in cultural and sports activities.
Three-months Residential Programme for Students
I am glad to tell you that a major milestone achieved this year has been the starting of the three months’ residential programme on Soft Skills Development for CA students. The first two batches of this programme were conducted with the help of National Institute of Financial Management, Faridabad, benefiting 107 Chartered Accountancy students. Encouraged by the response, the third Soft Skills Development programme is scheduled to start from December 1, 2008 at Jaipur. The venue of this programme is the LNM Institute of Information Technology, Jaipur, which is spread over 100 acres and has a calm and serene academic environment. Among other things, it will also help in enlarging the geographical spread of the programme. It would be my endeavour to replace the present 15-day General Management and Communications Skills course by this 3-months residential programme so that all students are able to reap its benefit
May I also inform you that work on the ICAI’s own residential Centre of Excellence at Jaipur, the foundation stone of which was laid in September, 2008, is going on and I am confident that this Centre of Excellence will become operational by next year. This will help us in making the 3-month residential course mandatory for all CA students before they are admitted as members of the Institute.
Residential Course for Senior Members at Hyderabad
The aforementioned three-month residential programme for students and newly qualified members was started to groom chartered accountants into a class of matchless professionals. However, at the same time there is a pressing need to ensure that senior members who did not have the opportunity of undergoing such a residential course, both in industry and practice, also have an opportunity to enhance their competitive competence and communication skills as well as their practical skills and professional and leadership abilities. Accordingly, it has been decided to start residential programmes of short duration for senior members as well and to have a Centre of Excellence for them. I am very happy to inform you that the ICAI’s first such Centre of Excellence is going to be inaugurated at Hyderabad by the end of December, 2008.
This Centre of Excellence at Hyderabad is spread over about three acres of land and is being equipped to have world-class facilities for holding a top level residential programme. This Centre of Excellence at Hyderabad has been conceptualized to be a landmark in the field of education and training, a learning and research hub for accountancy in India, and also a centre to help formulate economic and financial policies. In the Diamond Jubilee year of its service to the nation, this will indeed be yet another feather in the ICAI’s cap.
Revamped Online Payment System
It has been our constant endeavour to improve the functioning of the systems in the Institute to suit modern-day requirements. As part of this process, the online payment system of the Institute has been totally revamped to facilitate easy and real time online payments towards membership fees, enrollment of members, registration of students, registration for examination, ordering of publications, registration for conferences/seminars, registration for elearning courses, donations if any and many other services being offered by the Institute. I may assure you that the new online services portal is highly reliable and user-friendly payment gateway.
Need to fulfil CPE Requirements
As you know, the main objective of the Continuing Professional Education (CPE) requirements, which are mandatory for all members of the Institute with effect from 1st January 2008, is to enhance the skills and capabilities of the professionals. Tremendous efforts are being put to fulfill this objective of CPE by organizing a series of programmes in different areas of professional and related activities for the benefit of members. During the period 1st January, 2008 to 10th November this year, the total number of CPE hours generated has been a mammoth 7,65,000. Even more encouraging is the fact that out of the total membership of 69,582 holding Certificate of Practice (excluding the senior members and members residing abroad) around 14,000 members have already completed the minimum requirement of 20 CPE hours in the calendar year 2008 much before the stipulated time. I congratulate all such members for completing the CPE requirements so enthusiastically.
However, I am concerned about a large number of members who have apparently not taken the CPE requirements seriously. It is disturbing to note that despite the fact that first calendar year 2008 of the rolling three year period 2008-2010 is nearing its close, many members are yet to initiate the process of acquiring CPE hours for 2008. I appeal to all such members to complete CPE Credit requirement for the calendar year 2008 and plan their work schedules for 2009 in such a manner that they complete the CPE requirements comfortably throughout the year instead of making a last minute rush for the same in the last months. Completing the CPE Credit requirements hurriedly, just for the sake of it, is hardly desirable. This defeats the very purpose of the CPE and is not in the interest of the profession.
You could verify the number of CPE credit hours earned by you through the CPE Portal, www.cpeicai.org. In case, you find any discrepancy in the actual number of CPE hours earned by you and those appearing on the CPE Portal, please contact the concerned Programme Organising Unit. Your suggestions for inclusion of some newer topics/areas under the CPE Programmes will always be welcome.
Revival of Lapsed Membership
Friends, as you may have noticed, the Institute has taken several initiatives to bring all its members closer to it. I find that names of many members stand struck off due to nonreceipt of fees. This could be due to nonreceipt of communication from ICAI consequent upon change of address etc. Realizing the importance of the fact that the CA qualification is a coveted qualification, having been acquired after hard work and passing through rigorous system of examinations, the Council has approved an Amnesty Scheme to enable such members whose membership stands cancelled as on 13.05.2008 due to non-payment of membership fees, to get their membership restored with retrospective effect upon payment of membership fee for the entire period of removal and submission of Form 9.
This scheme is currently in force and will remain valid up to 31st December, 2008. It is satisfying for me to note that this scheme has evoked a very encouraging response and about 1000 members have already availed themselves of the facility of the retrospective restoration of their membership. I urge all the remaining professionals whose name has got removed from the ICAI membership list due to non-payment of membership fee to benefit from the Amnesty Scheme. All such members can visit www.icai.org and click the link ‘Restore Your Membership’ for online submission of Form ‘9’. May I also request you to help in identifying such members whose names stand struck off and pass on this message to them! Your help can be crucial because this message will otherwise not reach them as they do not receive the journal.
CAs are the Best Internal Auditors.
Internal audit is an area where CAs are by far the best professionals available. The independence, integrity, transparency, accountability, skill, competence and ability which chartered accountants possess are best suited for internal audit. A CA’s flair to grasp the intricacies of an entity gives him an edge in the area of internal audit. The ability to deal with numbers and the skills acquired during the course of practical work experience puts a chartered accountant way ahead of others to carry out the internal audit. To further enhance this competence, the Institute has come out with the Standards on Internal Audit and has set up an Internal Audit Standards Board. This will further enhance the visibility of chartered accountants and at the same time ensure top quality work being done by the chartered accountants.
Forensic Accounting
Forensic Accounting encompasses the use of accounting/auditing, investigative skills, data mining and the use of the computer as an audit tool. Chartered accountants, with their sound grounding in accounting/auditing, are the most appropriate professionals to offer forensic accounting and fraud detection services. Realizing this, a Certificate Course on Forensic Accounting and Fraud Detection is being started. The course will help members in acquiring investigative skills required to uncover corporate/business frauds, measure result damage and provide support/counsel by applying accounting and auditing principles for the detection of frauds. The details of this course are available on the Institute website. Meanwhile, work on starting a Certificate Course on Corporate Governance as well as a Certificate Course on Enterprise Risk Management is going on and I will be sharing more details of it in my next communication.
Friends, a number of other initiatives are also underway that are meant to add to the capacity, capabilities and skills of our professionals with the overall objective of making them the best in the world. I look forward to receiving your guidance and help in achieving this objective.
CA. Ved Jain
New Delhi
As you know, the main objective of the Continuing Professional Education (CPE) requirements, which are mandatory for all members of the Institute with effect from 1st January 2008, is to enhance the skills and capabilities of the professionals. Tremendous efforts are being put to fulfill this objective of CPE by organizing a series of programmes in different areas of professional and related activities for the benefit of members. During the period 1st January, 2008 to 10th November this year, the total number of CPE hours generated has been a mammoth 7,65,000. Even more encouraging is the fact that out of the total membership of 69,582 holding Certificate of Practice (excluding the senior members and members residing abroad) around 14,000 members have already completed the minimum requirement of 20 CPE hours in the calendar year 2008 much before the stipulated time. I congratulate all such members for completing the CPE requirements so enthusiastically.
However, I am concerned about a large number of members who have apparently not taken the CPE requirements seriously. It is disturbing to note that despite the fact that first calendar year 2008 of the rolling three year period 2008-2010 is nearing its close, many members are yet to initiate the process of acquiring CPE hours for 2008. I appeal to all such members to complete CPE Credit requirement for the calendar year 2008 and plan their work schedules for 2009 in such a manner that they complete the CPE requirements comfortably throughout the year instead of making a last minute rush for the same in the last months. Completing the CPE Credit requirements hurriedly, just for the sake of it, is hardly desirable. This defeats the very purpose of the CPE and is not in the interest of the profession.
You could verify the number of CPE credit hours earned by you through the CPE Portal, www.cpeicai.org. In case, you find any discrepancy in the actual number of CPE hours earned by you and those appearing on the CPE Portal, please contact the concerned Programme Organising Unit. Your suggestions for inclusion of some newer topics/areas under the CPE Programmes will always be welcome.
Revival of Lapsed Membership
Friends, as you may have noticed, the Institute has taken several initiatives to bring all its members closer to it. I find that names of many members stand struck off due to nonreceipt of fees. This could be due to nonreceipt of communication from ICAI consequent upon change of address etc. Realizing the importance of the fact that the CA qualification is a coveted qualification, having been acquired after hard work and passing through rigorous system of examinations, the Council has approved an Amnesty Scheme to enable such members whose membership stands cancelled as on 13.05.2008 due to non-payment of membership fees, to get their membership restored with retrospective effect upon payment of membership fee for the entire period of removal and submission of Form 9.
This scheme is currently in force and will remain valid up to 31st December, 2008. It is satisfying for me to note that this scheme has evoked a very encouraging response and about 1000 members have already availed themselves of the facility of the retrospective restoration of their membership. I urge all the remaining professionals whose name has got removed from the ICAI membership list due to non-payment of membership fee to benefit from the Amnesty Scheme. All such members can visit www.icai.org and click the link ‘Restore Your Membership’ for online submission of Form ‘9’. May I also request you to help in identifying such members whose names stand struck off and pass on this message to them! Your help can be crucial because this message will otherwise not reach them as they do not receive the journal.
CAs are the Best Internal Auditors.
Internal audit is an area where CAs are by far the best professionals available. The independence, integrity, transparency, accountability, skill, competence and ability which chartered accountants possess are best suited for internal audit. A CA’s flair to grasp the intricacies of an entity gives him an edge in the area of internal audit. The ability to deal with numbers and the skills acquired during the course of practical work experience puts a chartered accountant way ahead of others to carry out the internal audit. To further enhance this competence, the Institute has come out with the Standards on Internal Audit and has set up an Internal Audit Standards Board. This will further enhance the visibility of chartered accountants and at the same time ensure top quality work being done by the chartered accountants.
Forensic Accounting
Forensic Accounting encompasses the use of accounting/auditing, investigative skills, data mining and the use of the computer as an audit tool. Chartered accountants, with their sound grounding in accounting/auditing, are the most appropriate professionals to offer forensic accounting and fraud detection services. Realizing this, a Certificate Course on Forensic Accounting and Fraud Detection is being started. The course will help members in acquiring investigative skills required to uncover corporate/business frauds, measure result damage and provide support/counsel by applying accounting and auditing principles for the detection of frauds. The details of this course are available on the Institute website. Meanwhile, work on starting a Certificate Course on Corporate Governance as well as a Certificate Course on Enterprise Risk Management is going on and I will be sharing more details of it in my next communication.
Friends, a number of other initiatives are also underway that are meant to add to the capacity, capabilities and skills of our professionals with the overall objective of making them the best in the world. I look forward to receiving your guidance and help in achieving this objective.
CA. Ved Jain
New Delhi
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