Will The Policy of IIA Ruin the Hard Work Of Chartered Accountants?

Indian Institute of Accounting and its implementation was put forth in a parliamentary panel as a proposal in March 2022.

What does the proposal State?

The panel suggests setting up of institutes of accounting similar to IITs and IIMs for further development of the accounting and finance profession in the country.

The parliamentary report suggests that IIAs can be set up in India that may have a similar function to IITs and IIMs but will also ‘offer competition to the Institute of Chartered Accountants of India, ICAI’. The entry to IIA is similar to IIM and IIT by cracking difficult entrance exams.

The current government is bringing an amendment to the Chartered Accountants Act in order to end the monopoly of regulatory bodies like ICAI, ICWAI, and ICSI. The Bill is to amend the Chartered Accountants Act 1949, the Cost and Work Accountant Act 1959, and the Companies Secretary Act 1980 which was introduced by MoS (Corporate Affairs) Rao Inderjit Singh.

The Pros and Cons Of the Policy

Pros

1. Students are hopeful and see a light in Accounting Career, since the ICAI has a been a tough evaluator.
2. Ends the Monopoly of the Audit and Accounting Body ICAI.

Cons

1. The rise of unhealthy Competition amongst the professionals.
2. A Non CA/ CS / CMA in the disciplinary committee to assess the professionals.
3. The Institute runs on no reservation policy and the policy might bring Reservation.
4. The policy might allow other professionals to certify documents which only a CA is currently allowed to attest.
5. A Confusion to choose a Career Path by the Students.

This proposal has created unrest amongst the fraternity. Majority of the students are opposing the proposal. On the other hand some are excited about the proposal creating a slogan ‘One Nation One Accounting Body.’

Many Chartered Accountants and Students took social Media to oppose.

A well Known Chartered Accountant from Bangalore N Raama Prasad says " The attest functions and expression of opinion on Financial Statements should be only with the Chartered Accountants as the curriculum of ICAI tunes the CA as such. The code of conduct and ethics in the Accounting and Auditing profession will be compromised with the introduction of IIA"

"IIA policy will cause confusion in the minds of students. The policy will end the Monopoly but will be an Autonomy. This gives The ICAI to amend certain policies for the betterment of Students and Members." Says CA Karan Mansukhani a well known Chartered Accountant and Professor from Mumbai.

"No need of IIA when we have world class CAs which are serving nation from last 74 years" - says Navneet Rana MP from Amravati.

Also Read:

• Voice of CAs against IIA reaches Parliament
• Parliamentary committee suggest formation of IIA to end CAs monopoly