UDIN : Innovative concept to curb malpractices

Many times it has been noticed that non-CAs has been misrepresenting themselves as CA member and providing certification services to various Authorities and Stakeholders. Such malpractices started bringing a question on the genuineness of financial documents/certification done by actual CA Members in practice.

Seeing an increase in a number of complaints received by ICAI, the Professional Development Committee of ICAI has come out with an innovative concept of UDIN i.e. Unique Document Identification Number.

What is UDIN :

Unique Document Identification Number (UDIN) is 18-Digits system generated unique number for every document certified/attested by Practicing Chartered Accountants. It will enable various Stakeholders and third parties to check the authenticity of the documents and will secure the certificates attested/certified by practising CAs.

Applicability of UDIN :

From 1st February 2019 it is mandatory for all practising Chartered Accountants to generate and obtain UDIN for all Certificates issued, containing financial information or any other contents; which are certified by them to be True and Fair or True and Correct.

UDIN cannot be generated in name of Firm and has to be obtained only by practising CAs holding full time COP. In case of Partnership firm or LLP, signing partner has to generate UDIN in his name. No other partner can obtain UDIN instead of signing partner.

UDIN is applicable not only to manually signed certificates but it also applies to digitally signed / online certificates.

Practising CAs holding full-time COP has to follow the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) issued by AASB (Auditing and Assurance Standard Board) of ICAI.

Exception to UDIN :

Though practising Chartered Accountants have to generate and obtain UDIN for all certificates, following are list of certificates for which UDIN is not made mandatory :

• Auditor's Opinion/Reports issued under any Statute to any entity or any person (e.g.: Tax Audit, Transfer Price Audit, VAT Audit, GST Audit, Company Audit, etc.,)
• Valuation Reports,
• Quarterly Review Reports,
• Limited Review Report
• Information System Audit,
• Forensic Audit,
• Revenue / Credit / Stock Audit,
• Borrower Monitoring Assignments,
• Concurrent / Internal Audit and the like,
• Any report of what so ever nature issued including Transfer Price Study Report, Viability Study Report, Diligence Report, Due Diligence Report, Management Report, etc.

Dropdowns / Options available while generating UDIN :

While generating UDIN, members will have to select one of following from dropdown list :

Other important information with regards to UDIN :

• UDIN is to be generated for Assignment and same UDIN is to be used in all documents signed under that assignment. No need of multiple UDIN.
• There is no restriction on number of UDIN generated in a day/month/year.
• Generation of UDIN is free and has no charges.
• UDIN is secure and it does not contain information about the client.
• UDIN has to be generated at time of signing the certificates or within 15 days from date mentioned in certificates. No option to generate UDIN in advance basis.
• No documents or attachments has to be uploaded while generating UDIN.
• UDIN is to be generated only once for original certificates. In case client asks for duplicate certificates, same UDIN can be mentioned.
• UDIN has to be mentioned after every signature and membership number. No need to mention it on every page or start of certificates.
• UDIN has no expiry, unless revoked
• Revocation / Cancellation of UDIN can be done by members by providing an appropriate narration. There is no time limit for revocation.
• Disciplinary proceedings as per the Second Schedule Part II of The Chartered Accountants Act, 1949 can be taken against members who do not adhere to the requirement of UDIN

Source of information : https://udin.icai.org