Page 5 - A Position Paper on Regulation of Accountancy Profession and Oversight Mechanism in India

Foreword

ccountancy Profession has been core to sustainable development and the Indian Chartered
Accountancy profession has seen its tryst with the growth momentum of the Indian economy
Asince early independence era in 1949. In the sagacious journey of this great nation, the Chartered
Accountancy Profession has been a strong edifice playing the role of crusader envisioned by the
policymakers to be an instrumentality of augmenting and consolidating public interest. The Institute of
Chartered Accountants of India (ICAI) since its inception has been an Institution aiding public interest and
welfare and its regulatory domain has been all pervasive, setting requirements of entry to the profession
through practical training and examination, and thereafter, the grant of license to practice Chartered
Accountancy profession, regulation of professionals’ conduct through standard-setting and laying down
the Code of Conduct and disciplining its errant members.

The trust in CA profession has been evident from its symbiotic growth commensurate with the growth
in the Indian economy. Right from a controlled socialist economy in the early Independence days to a
swift yet radical transformation to a market-driven by laissez faire, the Indian CA Profession has been
a harbinger of upholding the probity of financial ecosystem all through. The signature of Chartered
Accountants carries with it an unmistakable stamp of risk mitigation and this is seen to epitomise with
the fair representation of financial statements.

As the economies mature and the trade and commerce sees diversification, integration and forays with a
technological era and disruptions, the pulls and pressures of calibration of regulation with development
coupled with the intrinsic desire of easy gratification is something which is embedded in the civilisations.
The task of an Accounting function becomes very critical to do the financial and regulatory due diligence.
The instant publication unravels the momentous journey of ICAI in building a strong and resilient financial
system by the persistent efforts of ICAI in unleashing financial regulation in the country all through. It also
exemplifies the iconic evolution of ICAI as one amongst the largest Accounting bodies globally and how
ICAI has laid the path of moral, ethical and professional rectitude for its members in building India as a
vibrant nation on whose financial credence; the world can rely upon. It discusses the current model of
regulation which has seen it evolve with Indian economy and why models borrowed from other countries
in terms of regulatory oversight may not be consistent with what the economy needs and there also
appears a strong case for the India model of an accounting body like ICAI set up as a statutory body to be
emulated by other countries for effective regulation and avoiding multiple bodies.
A task of penning down a historical and developmental perspective of financial regulation by ICAI nearing
seven decades is fraught with its own limitations given the enormity of exercise.

It is expected that the publication will provide enough insight into the ICAI’s selfless journey for the cause
of bringing a resolute India and that there is an inherent need to strengthen ICAI with more powers to
correct financial aberrations.
The contribution of team of officers, under the Acknowledgement section, who worked on this paper
under the stewardship of CA. M.P. Vijay Kumar, Central Council Member is acknowledged.

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