Government to end ICAI Monopoly as A Parliamentary Committee advises the establishment of IIAs for the accounting and finance professions

In a major setback to the Institute of Chartered Accountants of India (ICAI), The Standing Committee on Finance has tabled a report on the Chartered Accountants, the Cost and Work Accountants, and the Company Secretaries (Amendment) Bills, 2021, has proposed the Government to set up an Institute of Accounting (IIA), which is similar to the IITs and IIMs in India, with a view to providing higher quality education in the Accounting and Finance sector.

The Standing Committee on Finance’s report on the amendment Bill on three professions Chartered accountants, company secretaries, and cost accountants has come as a double setback to the three institutes, especially the CA Instituteoverseeing these professions.

The Studentspassing from such IIAS would be receiving a Certificate of Practice and they will be called Certified Professional Accountants.
The report tabled on last day stated that the qualification and licensing of Accountants in advanced countries like the US, UK, and Canada are done by multiple bodies unlike in India where one Institute has a statutory monopoly over a whole profession.

Raising concerns about the scope for improving the quality and competency of the profession, the report stated that multiple bodies shall be introduced in the sector to promote healthy competition, raise standards and quality of auditing and accounting and improve the credibility of financial reporting.