Standing Committee on Finance in its 45th Report has -
1. Proposed Revamp of Disciplinary Mechanism and Time-Bound Disposal of cases as against the existing disciplinary regulation of professionals (Chartered Accountants, Company Secretaries & Cost Accountants).
2. “Suggested” government to establish the Indian Institute of Accounting (IIA).
Really What ????
Indian Institute of Accounting akin to IITs and IIMs…But, wait it’s just a suggestion!
Let us understand the reasons behind this suggestion, instead of outrightly judging the need or correctness of the suggestion -
1) To put an end to the “Statutory Monopoly” and autonomy enjoyed by the Institutes over Accounting and Finance Profession, the base idea is taken from the US, UK and Canada where Qualification (conducting exam) & License to practice, of the professionals is done by multiple bodies, unlike in India where one Institute completely control the whole profession.
2) To Promote Healthy Competition and raise the standard of accounting education, the credibility of Financial Reporting and improving the quality of Auditing etc. thereby, enhancing the development of the Accounting and Finance Profession.
Now, let’s see what the IIAs would be like:
1. The IIAs will be statutory bodies set up by a Central Law similar to IITs and IIMs, across the country.
2. Each IIA will have an academic council that will develop the curriculum in the field of finance, auditing, cost accounting, tax, law, business strategy etc.
3. Admission will be through a National Entrance Test after secondary schooling.
4. Those who qualify in the undergraduate programme will be provided with two degrees choices, namely Bachelor of Accounting Or Bachelor of Business.
5. They will be given a License to practice similar to Chartered Accountants (CAs) and will be recognised as Certified Professional Accountants (CPAs).
I hope now you are in a better position to discuss the need or correctness of “the suggestion” recommended by the Parliamentary Panel!...we will discuss it may be in the next article.
Till then, Happy Learning!!
