The CA Institute has embarked on an “impact analysis” of the recent Standing Committee on Finance report that, among other things, called for an end to the “statutory monopoly” of the ICAI over the accounting profession, its President Debashis Mitra has said.

“Many of you are concerned about the contents of the report. The council is seized of the matter and an impact analysis is being carried out. Please be rest assured that your council will leave no stone unturned to maintain the quality and autonomy of the institute,” Mitra said in an official video message to ICAI’s membership and stakeholders. 

This message came at the end of a two-day council meeting on March 24 and 25. The council is learnt to have, among other things, deliberated on the Standing Committee report.

Mitra said that ICAI will do everything possible to ensure that the “self respect” of the profession is “not dented” and commitment to independence, excellence and integrity continues.

“Every challenge will be converted into an opportunity,” he added.

It maybe recalled that the Parliamentary Standing Committee on Finance — headed by BJP MP Jayant — had in its report tabled in Lok Sabha on February 23  endorsed the proposed revamp of the disciplinary mechanism of the three professional institutes CA Institute, Cost Accountants Institute and the Company Secretaries Institute. It also recommended that the government consider setting up an Indian Institute of Accounting (IIA) on the lines of IITs and IIMs, thereby putting an end to the “statutory monopoly” enjoyed by the CA Institute over the accounting profession.

The panel has recommended that multiple bodies on the lines of advanced countries is required to promote healthy competition. It highlighted that the qualification and licensing of accountants in advanced countries like the US, UK and Canada is done by multiple bodies, unlike in India where one institute has “statutory monopoly” over the “whole profession”.

The report of the Standing Committee is only recommendatory and it is entirely upto the government to either accept the suggestions or ignore them, sources said. It is also well within the scope of the Standing Committee to make recommendation on issues not specifically provided in the bill but related to the subject matter of the bill, experts said.

The Chartered Accountants, Company Secretary and Cost Accountants Amendment Bill, which was sent to the Standing Committee, did not have specific provisions on the setting up of an Institute of Accounting (IIA)

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