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Restructuring of Central Council (4.1)
For a conscientious member, to be on the Council is a taxing job. The meetings are much more frequent than most corporate boards - they are long, often for three days. The Agenda is heavy, running into 2 or 3 big ring - bound volumes. Still, there have been areas of dissatisfaction with the working of the Council, and several suggestions for Restructuring.
Pre - Qualification
  In terms of minimum acceptable levels of experience and achievements, even to contest the elections.
Mix
  Should include more members from service. Reserve seats, say 10 % to start with.
Expertise
  Bring in some members with special expertise, such as -
 
Exposure to global trends in the profession.
IT and its applications in audit, advisory, etc.
Corporate Governance.
Eligibility
  Consider a minimum of 500 hours of CPE and 15 years professional standing.
Code
  Develop a code of conduct for members of the Central Council.
Tenure
  The President and Vice President's tenure may be increased to two years.
Efficiency
  Shorten the Council Meetings. Conduct them more efficiently. Email the minutes of meeting, soon after, perhaps even the next day' and certainly within a week.
Open Houses
  Each Central Council member may hold an Open House, two-way communication meeting, once a month, with members in his area. Take the issues to the Council' and give feedback to members.
Recall
  Consider a progressive, democratic amendment to the Constitution, providing for recall to Central Council members with whom their constituency members are dissatisfied.
Size
  Examine it. There will be pressure to increase it. Contain it, as much as possible. One suggestion was to have one representative per 1,000 members.
Committees
  The various committees - standing, as well as special committees should be made more efficient. They should work in a project mode, with end dates, milestones and time frames for their deliberations and outputs.
Devolution
  Devolve more matters to the Regions. Let them innovate. Different regions may show better initiative and creativity in different matters. Let them learn from each other. Help transfer the better practices. Use IT as a major tool for real time information sharing, exchange of views and quick decision.
Officials
  Empower the Secretariats at the Centre, Regions and Branches. Benchmark with successful, industry bodies like the CII, FICCI and NASSCOM, where the President and the elected bodies rely greatly on the Chief Executive (Secretary) and his team to act vigorously with their full trust, confidence and support.
Visionary Leadership
  The Council and the elected office bearers should focus on the multi-level Visions. The Council should minimise the Agenda items, papers and time spent on operational matters.
Strategic Thrust
  The Council should also demonstrate a long term strategic commitment, and continuity, in view of the periodic elections and the consequent changes of personalities.
Image
  Focus on the raising the image of the profession in India and abroad. Be assertive with the Government of India.
Discipline
  Many feel the need to uphold discipline. If necessary, punish even the larger firm, and senior CAs, without fear or favour. Give exemplary punishment to a few proven corrupt CAs so that the image of the rest can be protected and improved.
CA Scope
  Increase the scope of work for CAs. Open up new areas. For example, propose that all audit jobs for Government should be done by CAs.
Restructuring of the Central Council Committees(4.2)
Professional, democratic organisations like the Institute face many dharma sankats, dilemmas. One of these is the desire for committees, on the one hand, for in-depth analysis and consensus; and, on the other hand, the inadequate - attendance, participation and contribution of some of the members of the committees. The answer, of course, is not to abolish the mechanism, and centralise with the office bearers and the permanent secretariat' but rather to improve them. Several suggestions emerged.
Activity
  Use level of energy, activity and time availability as criteria in choosing Chairman and members of the various committees.
Reconstitution
  After two or three meetings, based on attendance and experience, the Chairman should be free to reconstitute the Committee, by dropping some members and adding others, on merits.
Norms
  Follow norms for attendance and discipline like the established voluntary organizations.
Staff Work
  The Secretariat to support the Committees with better preparatory homework, at the beginning, between each meeting, and at the end.
Back Up
  Committee members to draw upon the internal research capability and reach of their own organisations, and their network, both domestic and international.
Workshops
  Accelerate generation of ideas and convergence towards a consensus through one or more national and regional workshops.
Virtual Debate
  Circulate green papers, for study, comments and suggestions, within specified time limits.
Consultancy
  Where necessary, give a budget to the Committee to engage short term consultancy service for specific investigation and drafting. Use experts both from among CAs and outside the fraternity.
Decentralisation
  Form Disciplinary and other committees at the Regional level itself. Let only exception issues go to the committees of the Central Council. Where an all Indian view and harmonisation is needed, invite the Regional Committees to send in their recommendations, within a time frame.
Code
  Have a code of conduct for members of Committees, in addition to the code of council members.
Co-option
  Co-opt a few expert, senior members on the Council and committees, without having to go through elections. Also bring in non- CAs and representatives of the corporate sector, Government and agencies.
Transparency
  Publish the plans, proceedings, recommendations, decisions and achievements of committees, through interim and final reports.
Clarity
  Technical and other committees to give quick, decisive guidance, removing ambiguities.
Reciprocity
  Set up a Committee to work for reciprocal recognition abroad of the Indian C A qualification.
Regional Restructuring(4.3)
As the number of students and qualified members grow, even beyond the already large counts, the regional affairs of the Institute will also need restructuring. The almost unanimous perceptions are that -
The Institute's governance and management are still rather over centralised.
The regions have not, on the whole, taken the initiative and set examples for other regions to pick up.
Some members have gone to the extreme of suggesting even the abolition of the Regional Councils.
Suggested Action points for Regional Restructuring (4.4 )
It is useful to remember that an Indian region has more individual CAs and member firms than many countries. So it needs to rise to the occasion. The following kinds of actions will help it come up to the challenges of the Vision
Market Development
  Identify and develop new areas of work for members at state level, such as Sales Tax Audit.
Link Pin
  The Chairman of a Regional Council to be an ex-officio member of the Central Council.
Decentralisation
  Further decentralisation of activities to the Branches.
Ethics
  Enforce standards among members. Take up the milder disciplinary cases. Only the more serious ones to go to the Central Disciplinary Committee.
Equity
  Help the individual CAs and small proprietorships to survive, by impressing on the medium and larger firms to go for more value added services, rather than compete and depress the rates for the less remunerative jobs, like bank audits.
Student Body
  Foster the formation of a regional association of the CA students for self- management of their studies and career preparations.
Size
  Expand the membership of the Regional Council.
Eligibility
  Consider eligibility standard like 7 years of membership and 150 CPE hours. Keep reviewing and raising them, as the overall professional standards go up. Perhaps minimum 2 years in the Regional Council for Office bearers.
Code
  Adopt and practise a code of conduct for RC members.
Transparency
  Disclose the expenses of members on RC work in the Annual Accounts and Report.
Professional Development
  Reduce the pre-occupation with elections and the formal and informal campaigning and influencing that goes with it. Spend more time, energy and resources on professional development activities, such as papers, seminars and conferences.
Branch Restructuring (4.5)
As the Indian economy starts growing at a trend average of 7% p.a. the semi urban and semi-rural markets will expand. The branch network of the Institute will need expansion and strengthening.
Close to the Customer
  To come closer to the new CA business customers, the restriction of 50 km distance between two branches may need to be removed, especially in more densely populated areas.
Staffing
  To be effective in serving the members, branches may also need qualified, paid employees.
Norms
  Some basic common standards may be specified for the branches. Those who have the resources may exceed them.
Overseas Branches
  As India globalises, more Indian companies and CAs operate broad, it may be necessary to open more overseas branches.
Activities
 
Talks, Seminars, Workshops, Get-togethers, CPE.
Library, Bookshop.
Coaching, Counseling, Placement.
Visits by Regional and National Council Members and Officers.
Network
  Connect the branches with the RO by telecom and intranet.
Empowered
  Take up issues with local governments and agencies for promotion of CA professional interests and opportunities.
Restructuring Business Plans (4.6)
Translated into Action Points to be entrusted to Committees of the Council Professional Development
Key Actions Details Responsibilities Target Date
Introduction of Validation of CP and membership certificates on periodical basis To develop criteria for benchmarks / suitable grades for evaluation and score card approach

Fix specific grades for validation		 Professional
Development
Committee		 December 2002
Mandatory CPE To commence continuous mandatory professional education to members for about thirty hours over a period of three years. Subsequently, making the members spend thirty hours per year, out of which at least 18 hours must be devoted to acceptable structured course Continuos
Professional
Education
Committee 		December 2004
Develop grading/rating of firms To establish a Strategic Review Group whose objectives are to assist firms in evaluating their ability to accommodate changes in the accounting profession and add value to the peer review process by incorporating an additional assessment of the firms strategic planning capabilities and readiness· Rating group to be constituted (Vision and Restructuring) First Phase December 2002. Second Phase ongoing basis
  Benchmarking the firms into different categories based on the gaps identified·

The evaluation process needs to be carried on a periodical basis say yearly to upgrade/downgrade the firms rating etc.·

The group shall comprise of specialists, experts, agencies, regulators etc., both at National and International level		 Professional Development Committee December 2002
  Facilities for
Sharing with other professions
Unlimited growth in the number of partners
Corporatisation of practice entities
To establish the multidisciplinary approach by networking with sister institutions and associations in India and Abroad·
To enable setting up professional firms with unlimited partners·
To enable establishment of limited liability firms to accept higher risks big size projects
 Professional Development Committee and Executive Committee April 2003
Research and Develop the models for sharing experience, infrastructure, revenue between -
Professional Entities
Other professional Entities
To obtain the necessary approvals.
To enable creation of good working environment and motivation for better contribution
Professional Development Committee April 2003
Members - by various profit sharing/ networking concepts      
Research and Develop the growth models for -
Regions
Markets
Industries
Functions
Specialists
Restructuring Business Plans Enhance the Public Image of the Profession Public Relations & External Communication
Key Actions Details Responsibilities Target Date
Publicise vision exercise and document widely To make the vision process more transparent by publishing the Vision document through Institute Journals, various other forums available to the Institute Public Relations Committee / Executive committee On - going from January 2002
Marketing of the profession for specialized capabilities -Nationally and Internationally To develop the necessary yardsticks and norms to be adhered to and clearing the material to be published·

To establish the necessary advertisement code for the profession after obtaining approvals for all the above steps		 Public Relations Committee / Executive committee To implement by Year 2003
Introduction of Awards for eminent Members To establish the criteria and ratings which are transparent and forming a panel of judges to select the deserving member Public Relations Committee / Executive committee March 2003
Publicise the disciplinary measures widely to enhance user awareness and to have the preventive effect on members To develop the Publicity Strategy for Professional Discipline and Institute's Disciplinary Activities Public Relations Committee / Executive committee June 2002
Market "Indian CA" Advantages to MNCs for shifting their accounting base to India for strategic cost advantage. To develop the strategy for marketing widely Indian CA Public Relations Committee / Executive committee June 2002
Publicise the effects of the new initiatives to get greater growth and the regulatory support Create platforms to propagate our new initiatives among different users e.g., Government, Trade bodies etc. Public Relations Committee / Executive committee On going from June 2002
The understanding about profession, it?s mission and good work done in the eyes of stakeholders. Build up sufficient impact of our profession in Government Circles by creating utility value as a spokesman Public Relations Committee / Executive committee On going from June 2002
Create Data Bases of the products/services offered by the firms in various Market/Industry Segments To develop the requisite database, which helps the business entity to access and buy the relevant products or services, provided by the firm Public Relations Committee / All committees April 2003
 
Restructuring Business Plans Globalisation of Profession International Reciprocal Arrangements
Key Actions Details Responsibilities Target Date
Get the recognition in the top 10 countries on top priority To enter into strategic arrangements/agreements to compete globally·

To harmonise the accounting standards realising the impending gobalisation of the business·

To adopt the international best practices and develop the necessary criteria to reach the requisites of benchmark·

Evaluate basis and outcome of such recognition		 International Affairs Committee April 2003
Get the recognition in other countries To develop working alliances with other countries and harmonise the accounting standards and working practices International Affairs Committee April 2004
Exchange of professionals with Industries, International Institutions To develop the strong relationship with other institutes globally to acquire the newer skill sets necessary for providing services to the clients globally International Affairs Committee April 2003
Welcome the merger/consolid-ation of professional firms to create large 'FIRMS' by introducing processes and guidelines To establish network between practices which creates an effective forum to communicate home country or international contacts that would facilitate the forming of strategic alliances International Affairs Committee / Professional Development Committee April 2003
 
Restructuring Business Plans Enhance the credibility for the Financial Statements Accounting Auditing Standards and Continuous Mechanism for Resolving Issues
Key Actions Details Responsibilities Target Date
Develop Industry specific Accounting Standards
To commence the preparation of Accounting Standards related to:
Power
IT
Insurance
Agriculture
Bio-Technology
Communications
Space and Aviation
Defence
Newsprint
Infrastructure And to take up more new industry specific accounting standards on need basis as and when it arises.
Accounting Standards Board December 2002
Constitute specific Industry Groups/ Committees
Core land task Group needs to be established comprising of Industry Specialist, consultants, Government Nominees. The Group shall develop on continuous basis the requisite amendments, change, incorporate new issues, carry out reviews and suggest measures to address the industry wise business/accounting issues and resolving queries etc. to begin with:
Power
IT
Insurance
Communications
Accounting Standards Board/Auditing Practices Committee December 2003
Develop Industry specific Accounting Standards
To commence the preparation of Auditing Practices relating to:
Insurance
Agriculture
Bio- Technology
Communications
IT
Accounting Standards Board/ Auditing Practices Committees December 2002
Constitute Government Accounting Advisory Group To constitute task group to develop the best practices and Standards relating to Government Accounting Executive Committee December 2002
Remove the gap between IAS and AS and move towards global standards Introduce all the standards in line with IAS·

Focus on effective implementation of Accounting Standards·

Address issues on Accounting Standards		 Accounting Standards Board March 2003
Develop Data Base for Best Practices in Accounting and Auditing To establish an effective forum wherein opportunity is available to members to share their ideas and concerns. Institute shall take the necessary lead in bringing together necessary resources. These processes help in implementing new ideas or seek guidance for improvement Accounting Standards Board/Auditing Practices Committee June 2002
 
Restructuring Business Plans Keep the Ethical Standards High Code of Ethics & Disciplinary Proceedings
Key Actions Details Responsibilities Target Date
Develop the existing code of ethics in line with International Best Practices. To develop ethical standards in line with global best practices and incorporate necessary changes, know how, amendments considering the needs of business/Regulators Committee on Ethical Standards & Unethical Removal of Auditors April 2003
Introduction of Peer Reviews (Quality Assurance Reviews) To develop the procedures and criteria for Peer Reviews among the members/firms. Identify gaps, if any, with the Strategic Planning Practices of the firms·

Addressing the quality control issues with the best practices criteria for facilitating better planning·

Implementing changes in their practices to render top class quality services to the clients		 Professional Development Committee June 2002
Strengthen and speed up the Disciplinary and resolution process by:
Making procedures transparent
Decentralisation of certain matters
Special Benches for specific matters
Introduction of Suo-Motto Proceedings
Use of Technology for the Processes
To initiate necessary steps to identify new methodologies and to work out improvements to make the disciplinary proceedings effective, transparent by combining the technology efficiently to make the process timely and early resolution·

Where necessary and cost effective - try and decentralize the Disciplinary Committee functions and introduce the Suo-motto reviews for better compliance		 Disciplinary Committee June 2002
 
Restructuring Business Plans Development of Future Members Curriculum, Training
Key Actions Details Responsibilities Target Date
Introduction of specialized courses both at entry level and post qualification level
To improve the quality of education covering the necessary areas of subjects to assure public that the stringent pre-qualification training and registration requirements are in place and that the members possess the required level of competencies· To develop continuous learning and self-development on global financial management concepts, models techniques and practices. Further, allow members to introspect, assess own aptitudes, strengths and specialise accordingly· Build on post qualification courses introduced on
Information Systems Audit
Computer Assisted Audit Techniques
Insurance
WTO·
Develop and introduce new products such as
E Business·
Data Management
Continuing Professional Education Committee (CPEC) April 2003
Monitoring of Practical Training To establish the objective of stringent pre-qualification training and registration requirements to assure the public that the standard of curriculum meets the minimum Board of Studies April 2003
  level of competence. Further, Institute has to continuously revise its entry standards and registration requirements keeping in view the changes in business needs    
Grading the training facilities available with various firms and corporates To develop the criteria of grading to benchmark training based on the firms/ corporates grading. Ensure that the firms/corporates have strictly adhered to the pre-determined criteria Board of Studies April 2003
Extension and Enhancement of Campus Recruitment Develop and build a database on industry requirements, survey and identify professional job opportunities. Professional Development Committee April 2003
Continuous up gradation of Academic Curriculum to get the global recognition To update the necessary flexible curriculum at par with global standards to cope with Trans-national corporations and increased international activity. Further internationally recognised qualifications with be required for exploiting new opportunities Board of Studies April 2002
 
Restructuring Business Plans Knowledge Management
Key Actions Details Responsibilities Target Date
Creation and Development of Industry specific Databases (Access on Specific Charges) To develop industry specific technical databases and allow access to firms/members on a continuous basis that helps small and medium size practices groups (SMP) to gain the competitive advantage Professional Development Committee, Research Committee, IT Committee June 2002
Introduction of Computer Based Training for the members To provide training to members utilising formats as self - study videos, Computer assisted tutorial course, distance learning on Internet, covering practice management, industry specificity courses·

To develop teleconferencing facilities for members to share ideas, concerns on newer areas of interest industry wise·

To foster alliances with global firms and Institutes to share technical and business etiquette's and best practices skills		 Professional Development Committee, Research Committee, IT Committee December 2002
Develop courses on:
Business skills
Strategic skills
Soft skills
Training in Best Practices
To develop the new expanded range of services as well as empower the members with soft, analytical land leadership skills Professional Development Committee, Research Committee, IT Committee December 2002
Publish Practice Guides in Business Development Specialisation in New Markets To provide a number of technical aids or tools to firms and members to establish or demonstrate standards of practice and also to provide with models that can be used in their day to day work Professional Development Committee, Research Committee, IT Committee June 2002
Develop FAQ Data Base and allow free access To establish the website as a service to its members providing information on legal issues or interpretation of law provisions. Further, to give free advice to all interested members through e-mail submissions and publishing of FAQ columns Professional Development Committee, Research Committee, IT Committee September 2002
Step up the Research Faculties Develop the necessary infrastructure and the required faculties to monitor the research strategies identified Research Committee September 2002
Collaborative Research:
With Industry Participation
With other Institutions
With Universities
With other International Institutions
To enter into collaborations with top class Institutes globally and the team shall carry out studies on a continuous basis on new products/process on assurance and other value added services· Research Committee December 2002
  To garner financial support from the regulators, charities, members both internal and external to maintain and upgrade the requisite facilities as and when the need arises    
Recognise/Award the research efforts of Professional entities and encourage the sharing of the same with the profession Identify and work with professional entities for shared research projects·

Develop a suitable business model for sharing of the outcome		 Public Relations Committee/ Research Committee December 2002
To establish a mechanism for members to access market for growth identified by regions, national and international levels Professional Development Committee April 2003

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