NEW DELHI: A Parliamentary panel on Wednesday suggested setting up of institutes of accounting similar to IITs and IIMs for further development of the accounting and finance profession in the country.
Multiple bodies on the lines of advanced countries are required to promote healthy competition, raise the standard and quality of auditing and accounting and improve the credibility of financial reporting, the Parliamentary Standing Committee on Finance said in its report tabled in the Lok Sabha.
The suggestion is part of the report on 'The Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2021'.
"The committee desires that the government should consider setting up of Institutes of Accounting (IIA) akin to IITs and IIMs for further development of the accounting and finance profession in the country," it said.
The corporate affairs ministry introduced the bill in Parliament last December whereby changes have been proposed to existing legislations governing the apex institutes of chartered accountants, cost accountants and company secretaries.
Regarding the appointment of members to the disciplinary committees of the apex bodies of chartered accountants, cost accountants and company secretaries, the panel said, "the members of the disciplinary bodies may thus be appointed as proposed in the bill".
The bill has proposed to have a non-Chartered Accountant (CA), non-cost accountant and non-company secretary as the presiding officer of the disciplinary committees of the respective apex institutes.
Besides, the government has proposed that each committee should have three nominated members who are not a part of the particular institute concerned.
The Institute of Chartered Accountants of India (ICAI) had raised concerns about the proposal, while the Institute of Cost Accountants of India (ICAI) told the panel that it had no reservations about the manner of constituting the disciplinary committee.
The Institute of Company Secretaries of India (ICSI) was of the view that parameters for selecting the presiding officer and members of disciplinary committees and such restrictions should be specified through rules rather than through regulations.
"The committee feels that while the autonomy and independence of the professional institutes should not be interfered with unnecessarily, the integrity associated with financial reporting cannot be diminished in any way since it reflects business standards and financial robustness for the entire country.
The members of the disciplinary bodies may thus be appointed as proposed in the bill," the panel said.
According to the panel, terms of the constitution of the proposed coordination committee among the three institutes may be reviewed to the extent that it may be chaired by an eminent person from industry, finance or business who is not a member of any of the three institutes in question.
The bill has proposed that the Secretary of the Ministry of Corporate Affairs would chair the coordination committee.
"The secretary can be a member of the committee and represent the government side.
The coordination committee may act as the apex body for harmonious regulation as well as overall professional development of the three institutes," the panel report said.