NEW DELHI: If Chartered Accountants of India get practice rights in the UK and Canada as part of the free trade agreement negotiation, then on a reciprocity basis, the professional accounting body of India will also support the members of these countries to practice in the country, Aniket Sunil Talati, ICAI President briefing the media said on Thursday. Bar Council of India recently allowed foreign law firms to practice in India.
“On a reciprocity basis, if our members get the practice rights in the UK and Canada, then we are happy to welcome them on our shores but it should be on a level of equality,” Talati said. He further stated that the institute has constituted a group for international networking which is looking into how Indian firms can collaborate with foreign firms for an alliance. He said the Council will take a final decision on this after the group submits its report on the possibility of alliance with the other countries.
In addition, Talati also said that the peer review mechanism which is mandatory for the CA firms that audit listed companies will now be extended to all the audit firms with five or more partners from July 1. Peer review is a mechanism through which the third party – external and independent audit professional - examines the documentation and conduct of the audit firm.
He also added that the ICAI’s disciplinary committee has never been soft on defaulting members and removed many CAs. He informed that so far, 6,766 cases have been registered under a new disciplinary mechanism from 2007 till March 31, 2023, out of which a decision has been taken for 4,249 cases.
Besides this, Talati also said that the quality of audit doesn’t depend upon the size of the firm, He stated that it would be an injustice for the smaller firms if only large firms would be allowed to conduct the audit of big companies. The statement is relevant in the context of the Adani Group which was blamed by the Hindenberg report for hiring a small audit firm Shah Dhandharia, that audits the group.
Panel looks into alliance with foreign firms issue
Aniket Sunil Talati stated the institute has constituted a panel for international networking which is looking into how Indian firms can collaborate with foreign firms for the alliance. He said the Council will take a final decision on this after the group submits its report on the possibility of an alliance with the other countries