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Richa Mishra
K R Srivats

New Delhi , Jan 14

IS the autonomy of the Institute of Chartered Accountants of India (ICAI) once again under attack? The Department of Company Affairs (DCA) is understood to have shot off a letter to the institute, "advising" it to get its accounts for last three financial years (up to 2002-03) audited by independent set of auditors.

According to informed sources, "the nominee of the Comptroller & Auditor General of India on the Council of the Institute would have a say in the appointment of the new set of independent auditors."

Currently, books of accounts of ICAI are audited by the auditors who are appointed by its Council. When asked what had prompted the Department to write such a letter, official sources said, "This action is based on the feed back which we receive on regular intervals on the functioning of the institute."

This letter comes at a time when ICAI has been crying foul on the `interventionist" approach adopted by the DCA in framing the amendments to the Chartered Accountants Act. The Bill has provisions to empower the Centre to issue directions to ICAI Council on matters that it may consider appropriate. If such directions are not complied with then the Bill provides that the Council can be dissolved through a notification.

The ICAI is not in favour of such a proposal and is said to have represented to the DCA against the provision on powers to issue directions.

In another set back of sorts, the Department is understood to have advised the Council to ensure that the `conflict of interest' situation should be avoided in the constitution of the Examination Committee of the Institute.

When contacted a senior ICAI official, however, said that he was not aware of any such letter from the DCA on the issue of special audit or any other matter.

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