Consequential Amendment to Audit Documentation Retention Period in Standard on Auditing (SA) 230, Audit Documentation

The Council of the Institute of Chartered Accountants of India had in August 2009, pursuant to the provisions of Rule 12 of the Chartered Accountants (Procedures of Investigations of Professional and Other Misconduct and Cases) Rules, 2007 had amended the audit documentation retention period appearing as ten years in paragraph 83 of Standard on Quality Control 1 to seven years. As a consequence of the above decision of the Council, with the issuance of this announcement by the Auditing and Assurance Standards Board, the audit documentation retention period appearing as ten years in paragraph A23 of the Standard on Auditing (SA) 230, Audit Documentation, issued in January 2009, shall also stand amended to seven years.

ICAI issues Exposure draft on AS 28

ICAI has issued exposure draft AS 28 - corresponding to IAS 36 (impairment of assets). The institute expects the comments on the same to be received by June 18, 2010

Click here to read on the draft exposure

Announcement on Views/suggesitions on Companies Bill 2009

The corporate form of organization is increasingly emerging as the preferred vehicle for economic and commercial activity and has contributed significantly to the growth of the Indian economy and the emergence of service, information and knowledge-based enterprises. In this backdrop, a comprehensive review of the Companies Act, 1956 and drafting of a new Companies Bill was taken up by the Government on the basis of a detailed consultative process and the Companies Bill, 2009 was introduced in Lok Sabha on 3rd August, 2009.

The new Bill proposes to open up new avenues for the professionals especially Chartered Accountants and at the same time casts a lot of responsibility on them for proficient conduct of the affairs of the companies.

In view of the importance of the Bill, the Institute has finalized its views/suggestions on the Companies Bill 2009 and submitted the same to the Ministry of Corporate Affairs. Click here for the views/suggestions of the Institute.

Seminar on audit of public sector undertakings

The institute is conducting a seminar in Chennai on May 28 on audit of public sector undertakings. Enrollment fees is Rs. 750 per delegate. The forum is available to the first 200 delegates on a first cum first serve basis.

Pls click on the link to read the entire agenda

POST IPL - ICAI TO ASK SEEK AUDITORS FOR MORE INFO

The accounting regulator, Institute of Chartered Accountants of India, will soon recommend to the Ministry of Corporate Affairs that auditors be asked to provide more information such as the revenue model, the break-even period and the cost benefit arising out of a particular funding pattern in the Companies Auditors’ Report Order (CARO).

A CARO provides detailed guidance to auditors of companies on compliance with the reporting requirements. It lists out matters on which the have to make a statement in their report. At present, auditors’ reports include information like date of determination of limits of loans, paid-up capital, sale of substantial part of fixed assets affecting going concern, use of long-term funds for short-term purposes, frauds notices received or reported by the companies.

The need for asking auditors to include information such as revenue model and break-even period has arisen after controversies over ownership and funding patterns of Indian Premier League (IPL) franchises. What kicked off the storm was ex-IPL commisioner Lalit Modi’s doubts over the ownership pattern of the IPL Kochi franchise. This escalated with government agencies questioning the source of funds pumped in various IPL teams. According to sources in the ICAI, auditors may soon start asking questions related to the source of funding and use of the funds. When contacted, ICAI president Amarjit Chopra refused to comment on the issue but added, “We can not keep on giving disclaimers and avoid owning the responsibility for things going wrong. We will have to own the responsibility which we may not have been accepting till now”.

Satyam-strung, ICAI targets MNC's

Against the backdrop of multi-crore Satyam fraud, the accounting regulator ICAI has sought information from 150 chartered accountant firms, including MNCs, to see whether they circumvented laws while providing auditing services in the country.

The Institute of Chartered Accountants of India (ICAI) has written to 150 firms seeking information on various issues including on agreement or contract for usage of name of multinational entity, Corporate Affairs Minister Salman Khurshid said in the Lok Sabha.

With regard to Satyam scam, he said the ICAI has constituted a fact-finding committee to look into the entire gamut of financial reporting, accounting, auditing aspects and suggest changes wherever required for the purpose of making appropriate recommendations to government, SEBI and other regulators.

"The fact-finding process is on and once the committee submits its report to the ministry, we shall take appropriate steps," he said.

The ICAI wanted to know the arrangement for sharing of fees/profit with other Indian CA firms with similar/identical name and with the multinational entity.

He said that the multinational firms came here through an automatic route under the FDI guidelines. "We are collecting the information and once it is collected we shall analyse it," he said.

Khurshid informed the House that out of 150 firms, 76 have given their documents while others are yet to submit.

Harayana Govt to give land to ICAI

Haryana government would explore the possibility of providing land to the Institute of Chartered Accountants of India (ICAI) for setting up of its training centres to impart training in accounts to officials of the state government. A decision to this effect was taken at a meeting which Chief Minister Bhupinder Singh Hooda had with representatives of ICAI here today.

The release said the state government officials would be given one weeks training and two such batches would be conducted in a month. Each batch would have about 20 to 25 government officials.

ICAI representatives were urged to study VAT assessment procedure as well as leakage in revenue and suggest measures to the state government to check leakage.

ICAI issues Exposure draft on AS 26

The Institute has released the exposure draft on AS 26, "Accounting for intangible assets" yesterday.

Click on this to read the exposure draft

Membership and Certificate of Practice Fee for the year 2010-2011

FOR THE ATTENTION OF MEMBERS

Membership and Certificate of Practice Fee for the year 2010-2011

Annual Membership and Certificate of Practice fee for the year 2010-2011 became due for payment on 1^st April 2010. The schedule of fee is as under: -

For Members below age of 65 years For Members above age of 65 years

(As on 1^st April 2010)

Associate Membership Fee	600/-		Associate Membership Fee	450/-
Fellow Membership Fee	1800/-		Fellow Membership Fee	1300/-
Certificate of Practice Fee	1600/-		Certificate of Practice Fee	1200/-

Individual circulars have been dispatched to members giving details of scales of fee and also the manner of remittance of the fee. The fee can, therefore, be remitted to the concerned Decentralized Office.

It may be noted that the remittance of fee has to be made by cheque or demand draft in favour of “Secretary, The Institute of Chartered Accountants of India” payable at a place where the concerned decentralized office is located.

Member may kindly note that the scheme for advance amount remittance has been revised by the Executive Committee whereby earlier members could pay an advance fee for a period of 3 years only but now members can remit any amount at their discretion in advance. However the same would be kept as advance in the credit of the member concerned and would be adjusted agai nst membership and/ or COP fee as and when the same becomes due and other dues, if any. (However member may note that in the event of any short fall in advance, due to revision/increase in fee(s), it is the responsibility of the member to remit the balance). For more details in this regard members may refer the Fee Circular sent to them. Members are further requested to return the Entry on Record duly verified by them by 30^th April 2010.

Members can also pay membership/COP fees by using the online facility available on the website. For the use of payment gateway, members are requested to log in through “Online Services” link available on home page of the Institute’s website.

Members might be aware that the Chartered Accountants Benevolent Fund has been set up with the object, inter alia, of providing financial assistance to Institute’s members and/or their families in distress. Chartered Accountants can become member of the Chartered Accountants Benevolent Fund either by paying ordinary membership fee of Rs. 500/- annually or become life member thereof by paying one time amount of Rs. 2500/-. The fund has been providing financial assistance to the members and/or the families of the deceased member depending on the number of request received and the fund position. In order to provide assistance to more members and in a substantial manner, augmentation of the Chartered Accountants’ Benevolent Fund is necessary. Towards this direction, members are earnestly requested to contribute their mite while remitting their membership/certificate of practice fee for the year 2010-11. It is hoped that the members of the Institute would respond positively to this noble cause.