ICAI Imposes Record Disciplinary Actions, Vows to Uphold Ethical Standards

New Delhi: In a strong move to uphold ethical standards, the Institute of Chartered Accountants of India (ICAI) has taken unprecedented disciplinary actions this year. The institute revealed that 241 Chartered Accountants (CAs) have faced punishments during the current financial year, including membership removal for up to five years. This is a significant increase compared to just 119 such actions last year.

A Robust Approach to Discipline

ICAI President Charanjot Singh Nanda emphasized the institute’s commitment to maintaining high ethical standards and swift disciplinary processes. “We are dedicated to ensuring a fair and fast disciplinary mechanism,” Nanda said, underlining that the ICAI intends to set a strong precedent for accountability within the profession.

The ICAI’s move comes as part of its effort to strengthen its disciplinary processes. While ICAI can take action against its individual members, it is still waiting on the government to notify amended provisions under the law that would allow it to take action against errant firms.

Meanwhile, the National Financial Reporting Authority (NFRA) has been more active in addressing issues related to firms where partners have been found involved in irregularities.

Focus on Audit by Chartered Accountants

Nanda also clarified the ICAI’s stance on the role of Chartered Accountants in audits, particularly in light of growing demands from company secretaries and cost accountants. These groups have been seeking the recognition of their members as auditors under the new Income Tax Bill.

“Audit work can only be performed by chartered accountants. We specialize in audit, and it is a serious responsibility,” Nanda explained. He emphasized that this expertise extends to tax audits as well. To address concerns about roles and jurisdiction, the ICAI plans to set up a committee with representatives from the Institute of Company Secretaries of India (ICSI) and the Institute of Cost Accountants of India (ICMAI) for further discussions.

Plans for Global Expansion and Work-Life Balance

Looking ahead, Nanda shared ambitious goals for the ICAI. One of his key focuses is on making Indian CA firms bigger and more competitive on the global stage. “India is a factory of accountants, and we want Indian firms to become global players,” he said, calling for government support in realizing this vision.

In addition, the new ICAI president mentioned that improving the work-life balance for CAs will be one of the institute’s priorities. A committee will be formed to explore ways to help CAs better balance their professional and personal lives, while respecting the individual choices of its members.

The ICAI’s enhanced focus on discipline and global expansion reflects its commitment to improving the standards of the profession. As the institute continues to strengthen its policies, it will undoubtedly play a key role in shaping the future of India’s accounting industry.