CA, these two letters are pioneer and is mark of Trust, Integrity and Independence. In the growth of a Country CAs play an important role. CAs are the manager’s of financial recourse of a country. Many CAs are working in service industry and many are doing their own business.
The way CAs can handle the financial resources; believe no other profession can do that. But for the few years the level of profession is going down. Perhaps the reason may be the loss of professional approach by CAs. If CAs gets more autonomy and more independence, I believe risk of window dressing and false financial statements may be reduced to the minimum extent. The more autonomy and independence to CAs act as a check for corruption also.
On a deep analysis we can say there are certain drivers which are leading to the loss of professional integrity, independence and approach.
First reason which I can see is that the appointment of Auditor is not an independent activity itself in fact in most of the case auditee himself appoint the auditor, In such case, expression of independent opinion by Auditor itself seem impossible.
Secondly, non-Standardisation of fee is also a matter of quality compromise. It has also seen that professional charges to a very low extent in order to survive in such a competitive environment.
Thirdly, distribution of professional opportunities is also not equal among the professional members.
Lacuna in the administration of Indian Revenue System is also a major factor for the slow growth of Indian economy.
Considering all the above facts reforms are required in Indian Revenue System.
First of all appointment of auditor should be assigned to an Independent statutory body. All the Audits (except individuals and HUF), whether it relates to a private company, public company, trust, society, AOP, banks, financial institutions, Insurance company or any other form of organisation incorporated under an statutory act shall be allotted by the independent statutory body so that high level of Integrity and independency can be maintained during the audit by CAs. Other than the above CAs should be given a rank equal to IAS, IPS or IRS and their right and duties should be enhanced accordingly.
Second thing which the ICAI needs to focus is that there should be standardisation of audit fee based on the net worth of the auditee subject to a minimum fee. This course of action will motivate the auditors to maintain the quality of audit and express an unbiased opinion of the true and fairness of the financial statements.
Thirdly, The Professional work should be assigned to the professional on an appropriate base. The distribution of professional work should be should be equal specially the audit work. At presents only professionals working at a large scale are considered during allotment of Audit work by the Govt. Authorities. Small and medium practitioners are not getting the proper attention on the part of Government.
Since most of the work gets centralized only to big firms, these firms are not able to deliver the quality work. There are the cases where large firms reassigned their work to some other firms due to over burden of work but even in such cases small firms are not able to deliver the quality work due to sharing of remuneration or working at a very low margin.
At present world is going through financial crisis and CAs can make difference but the need is to pay proper attention toward this profession. There are many companies where CAs has turned loss making companies into profit making companies.
In short & crisp if government could provide an opportunities to CAs in drafting and management of financial policy, the country could move much ahead as compared to our present position.
I would request to all the reader’s please share this article as much as you can, so that we could make a difference and could play an active role in growth of country.