| Dear Members |
| It is indeed a great pleasure and privilege for me to assume the office of Chairman, Committee on Information Technology (CIT), after a gap of three years, to further the interests of the profession in this evolving field which is very close to my heart. I acknowledge the efforts put in by the outgoing Chairman, CA. S. Santhanakrishnan, Committee members and committee secretariat. I request your support with the same zeal in my second innings as IT Committee Chairman. |
| I am extremely glad to note the progress made by the Committee and the increasing interest and support of members to the initiatives of the CIT. Technology plays a major role in facilitating all functions of business in this era, not just in transaction capturing and processing but even in lesser known areas like Corporate Governance and Risk Management. There is no doubt that Chartered Accountants with ISA qualification will play a major role in Information Systems Audit (ISA) in the coming years. |
| The technology revolution in the 20th century, particularly last 10 years, is a re-enactment of the Industrial Revolution that happened 150 years ago- with lessons that are valid even today. The Industrial Revolution was propelled by innovations but now the rules are being rewritten, powered by silicon chips and Internet bandwidth. With changing paradigms, knowledge and experience in technology are not merely desirable, but basic requirements for growth and even survival in the evolving global village. |
| Information Technology has evolved from a humble role of business enabler to business driver – the IT Wave is driving businesses today. www.amazon.com, the largest supplier of books in the world does not (a) make sales over-the-counter, (b) have any stores in prestigious malls around the globe, (c) have large warehouses or (d) large staff. |
| We have to change with the changing times by adopting IT to improve efficiency and effectiveness of our operations (CAAT/ GAS/ Practice Management Software), and also offer value added services (Systems & Process Assurance/ IS Audit, Consultancy, e-governance) which are in increasing demand. |
| Technology education is now becoming a must! While the need to develop technologically is quite obvious, I would like to present a few reasons, which are somewhat different: |
| 1. Find out how to use available technology: This is pertinent as it is estimated that only 5% of technology currently available is being used fully. Just reflect on this - Carrier never invented the dehumidification technology for air-conditioning! The IBM founder thought there was room only for a handful of computers in the world! |
| 2. Find out where to use Information Technology (IT): Match business needs and the right technology. Michael Hammer once said: 'People who develop software do not know what we need; we do not even know what we need until it is here.’ |
| 3. Find out how to get ROI (Return On Investment) from IT: As accountants, this is very important -technology is an enabler, not the end result. |
| 4. Find out how IT can be integrated and standardised. Integration is the biggest business in IT these days. If things can be standardised from the beginning, there will be no need to 'integrate' separately later. |
| 5. Find out the latest happenings in IT:. "Technology always seems to move faster than our ability to understand what to do with it; and the pace seems to be accelerating”. We need to be at the cutting edge of technology, as we need to be ‘awake’ to the world we're building, and not, as an old Sufi saying goes, merely be asleep in life's waiting room. |
| "...A crucial turning point comes when one is able to acknowledge that modern technics, much more than politics as conventionally understood, now legislates the conditions of human existence". -Langdon Winner |
The CIT would endeavor to take on IT challenges and convert them into opportunities for the profession. The CIT would be focusing on the following areas this year:
- Professional opportunities for ISA qualified members: The Committee is to advocate compulsory use of ISA qualified members for Audit of Systems in large listed companies with SEBI and the stock exchanges in respect of brokers, all banking and large non-banking financial institutions to provide increasing impetus and recognition to the ISA Course. The Committee should draw a framework for IS Audit prescribing the templates for engagement/ reporting/ performance, minimum fee structure and so on by constituting a study group for this purpose.
- Practical Training/ Workshops: The CIT would provide practical training/ workshops for hands-on experience in following emerging IT areas: IS Audit of Banks/ Banking Applications/ IS Audit of Stock Brokers/ Using CAAT’s/ Using MS-Excel as at tool for Financial Analysis/ Audit/ E-Governance/ Network Security Audit & Review/ IT Enabled Services (ITES)/ ERP and so on through tie-ups with various software vendors like i-Flex, and Tally.
- E-learning: To provide basic course inputs as a pre-ISA PT course and hence reduce the number of days/ hours of ISA PT.
- Track Technology Developments for impact on profession: The Committee will monitor constantly technological developments and their impact on the profession in terms of opportunities to render services. It is proposed to communicate these to members through the Institute Journal at least once every quarter. One of the areas highlighted by the committee is offshore audit, wherein accounts are audited in the country for overseas clients using digitized data.
- Small & Medium Practitioners (SMP’s): The Committee is to develop suitable programmes to promote and support SMP’s through programmes/training by demonstrating proven capabilities in the field of IS Audit/ IT Enabled Services and the like.
- ISACA MOU: ISACA’s Standards and Guidelines, are widely used all over the world in IS Audits. The Committee proposes to adopt the ISACA Standards for its members for IS Audits upon receipt of formal approval of the Ministry of Company Affairs. The adoption of these standards, guidelines and procedures by ICAI and making them available for DISA members will enable Audits to follow internationally accepted standards and guidelines and bring increased global acceptability of DISA qualification in carrying out IS Audits.
- XBRL India: ICAI will set up a High Level Group comprising stakeholders of different categories stakeholders to work on and promote XBRL initiatives. The Institute could be a jurisdiction, from XBRL perspective, for India. CIT will provide detailed plan/ layout in this respect for the Institute.
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| Please do visit the ISA Portal at www.isaicai.org regularly to keep abreast of the latest developments and initiatives of the Committee on Information Technology in this regard. |
| Wishing you all the very best, |
CA. Atul C. Bheda
E-mail: bhedaac@mtnl.net.in |
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| CAAT CD RESOURCE |
