As you are aware that certain professionals are targeting the profession of accounting & auditing by invoking provisions of some special laws that have a direct or indirect bearing on the profession of accountancy and auditing. Tax practitioners & advocates are claiming that accountants should not be allowed to practice law because advocates act empowers only advocates registered with BCI to practice law in India and provisions of income tax, sales tax, central excise, service tax & GST are contrary to the advocates act and as decided by apex court should be struck down so that monopoly of advocates to practice law across India is maintained. Painfully even cost accountants and company secretaries are supporting them in the issue to grind their axe against chartered accountants. Business owners particularly small & medium scale are taking it as an opportunity to get professional services on low cost as a commodity rather than as statutory compliance.
The main reason is we don't have a separate law for regulation of profession of accountancy & auditing practices. CA, CMA & CS acts regulate only the professional members, laws relating to companies, taxation, industries, statistics, banking, finance & accounting standards only require form & manner in which particular information should be given, certain govt authorities and courts have also power to demand information in a particular manner for particular purposes but nowhere there is uniform provision for maintenance of books of accounts, records, financial reports, audit and certification etc. That's why different business entities follow different accounting policies, set of records, procedures, business rules and systems and prepare or fabricate different reports for different authorities as the case may be. This gives ample opportunity to govt authorities to harass the business owners as well as their accountants and auditors in few cases.
Thus the accountant has to face the wrath of employer if he does not agree to his terms on one hand and prosecution by statutory & professional authorities in case errors & omissions in financial statements are unearthed by someone.
Therefore, I want to invite all accountants and auditors to represent before govt and courts to formulate a separate code for accounting & auditing practices applicable to all business entities whether companies, cooperatives or firms or individuals including general and special transactions undertaken by them. A separate law will standardize the accounting & auditing policies across the country for all and will make financial reports of a particular industry comparable. This will help the govt to make balanced economic policies as well for all.