The Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Bill, 2022, which was passed by the Rajya Sabha on Tuesday highlighting the procedural diligence involved in the legislation.
The Bill, which amends the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959, and the Company Secretaries Act, 1980, provides for the setting up of a coordination committee headed by the Secretary of the Ministry of Corporate Affairs.
This bill seeks to provide a mechanism to deal in cases of misconduct in the Institutes of CA, CMA and CS.
What are the aims of the Bill?
- The bill is aimed at enhancing accountability and transparency by audit of accounts annually of Institutes by a set of Chartered Accountant Firms appointed by the Council by the Comptroller and Audit General of India.
- To bring greater robustness and accountability in India's standards of audit and how audit certificates are being given.
- The bill also provides for the registration of firms with the institutes and it will help in paving the way for Indian accountancy firms.
- To enhance the quantum of fines for partners and firms found guilty of misconduct.
- The legislation also seeks to appoint non-Chartered Accountant (CA), non-cost accountant and non-company secretary as the presiding officer of the disciplinary committees of the respective institutes.
"The proposed amendments are very much in line with the core principles which have been given by the independent audit regulators", said Hon'ble Finance Minister Smt Nirmala Sitharaman.
Citing the Satyam and the ILFS scandals Hon'ble Finance Minister said "We have repeatedly been questioned about the number of failings of the CAs, who did not deliver as per expectations."
Smt Niramala Sitharaman, who is in charge of finance and corporate affairs ministries, noted that the bill has been envisaged after consulting various stakeholders and taking into account the findings of the Meenakshi Datta Ghosh committee. "The corporate governance system needs to be robust in order to meet the global investment expectations," added Smt Nirmala Sitharaman, reiterating the need of the Bill.
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