1. Disciplinary case :
In the case of ICAI v. Shri P. U. Patil, the Addl.
Collector of Customs had filed a complaint against the member alleging that the
member had issued false certificates of past exports to several parties without
verifying any supporting records or documents. On the strength of these false
certificates, certain unscrupulous importers were able to obtain import licences
and effect imports without payment of duty.
The allegations were examined by the Disciplinary Committee
of ICAI and it was found that the member was guilty of professional misconduct
under clauses (2), (7), and (8) of Part I of the Second Schedule to the C.A.
Act. The Council of ICAI accepted this finding and referred the case to the
Bombay High Court with recommendation to award punishment of removal of name of
the member for one month.
In the statement made before the customs authorities, the
member stated that his friend one Mr. ’D’ brought one certificate typed on the
letter-head of one of the importers and also brought one form of certificate to
be issued by him on his letter-head. The member requested Mr. ’D’ to produce the
relevant documents and records. However, Mr. ’D’ told him that the said importer
was known to him and, therefore, there was no need to verify the
records/documents. On this basis, the member issued the certificate without any
verification. The member had issued similar certificates to other parties also
on the basis of the recommendation of Mr. ‘D’. The member could not produce any
working papers before the Disciplinary Committee. The member did not attend
before the Bombay High Court. Considering the conduct of the member, the High
Court has ac-cepted the recommendation of the Council and held that the name of
the member be removed for one month. (P. 1198 of C.A. Journal for January,
2009.)
2. Compliance with CPE Credit Hours :
ICAI has made the following announcement.
(i) The time limit for completing the CPE Credit Hours for
2008 has been extended to 31-1-2009. In other words, a member may complete the
required 30 hours (including minimum 20 structured) of learning for 2008 by
31-1-2009. Similarly, members not in practice and senior citizens who have to
complete specified period (15 or 10) of unstructured learning in 2008 can
complete this period by 31-1-2009.
(ii) Members who have not completed the above CPE Credit
Hours of learning in a year will have to complete double the number of deficit
hours in the next year.
(iii) In cases where members holding certificate of practice
do not complete the CPE Credit Hours for 2008, the Council has decided that
names of such members will not be included in any panel that is forwarded by the
Institute, on or after 1st January, 2009, to any regulators or other
authorities. In the case of a firm, if any partner/paid assistant has not
completed the requisite CPE credit hours for the year 2008, the name of the
partner/paid assistant will not be included while considering the eligibility
criteria and this fact will be stated in case the firm is otherwise found
eligible after excluding names of such partners/paid assistants.
3. Accounting Technicians Course :
(i) The C.A. Regulations are amended by a Notification dated
2-12-2008 to give recognition to the above course for students. These amendments
are published on pages 1232-1236 of C.A. Journal for January, 2009. Broadly
stated, this course provides that a student who has passed 10 + 2 examination
can join this course after passing the CPT entrance examination. Thereafter, the
student needs to pass four papers in (a) Accounting, (b) Business Laws, Ethics
and Communication, (c) Cost Accounting and Financial Management, and (d) Direct
& Indirect Taxation after undergoing study course for about 9 months with the
Board of Studies. The student has also to undergo 100 hours computer training
and an orientation course. To ensure that the student has adequate practical
exposure, such student will be required to undergo practical training of one
year under a Chartered Accountant whether in industry or in practice before
he/she is awarded Accounting Technician Certificate (ATC). He/she will be able
to use designation as ‘Accounting Technician’.
(ii) The following categories of candidates are entitled for
grant of Accounting Technician Certificate and such students, for the purpose of
issue of the Certificate are required to make an application to ICAI at Regional
office. No fees are payable for getting this certificate.
(a) Passed Professional Competence Examination, in
entirety, and also completed the prescribed period of practical training, as
applicable at the relevant time including excess leave, if any.
(b) Passed Professional Education (Examination II), in
entirety, and also completed the prescribed period of practical training, as
applicable at the relevant time including excess leave, if any.
(c) Passed Intermediate Examination under the Chartered
Accountants Regulations, 1988, in entirety, and also completed the prescribed
period of practical training, as applicable at the relevant time including
excess leave, if any.
(d) Passed Intermediate Examination under the Chartered
Accountants Regulations, 1964, in entirety, and also completed the prescribed
period of practical training, as applicable at the relevant time including
excess leave, if any.
(e) Passed Intermediate or the First Examination under the
Chartered Accountants Regulations, 1949, in entirety, and also completed the
prescribed period of practical training, as applicable at the relevant time
including excess leave, if any.
(f) Exempted from passing the First Examination under the
Chartered Accountants Regulations, 1949, in entirety, and also completed the
prescribed period of practical training, as applicable at the relevant time
including excess leave, if any.
Note : The above application can be made online and the
relevant Form of Application appears on the website of the Institute at http://www.icai.org/addupdate/dec72008.php.
4. Changes in the C.A. Course for Students:
Some important changes are made in the existing CA. Course for the students. In the new scheme, any CPT pass student can get registered for ‘Integrated Professional Competence Course’ (IPCC) (new name for the course earlier called PCC) without articleship registration and can sit in the new IPCC exam after 9 months of registration. The new IPCC comprises 2 groups. Group 1 has 4 papers and Group 2 has 3 papers.
Though the number of papers of the IPCC has been increased from 6 to 7, there is no change in the syllabus. The existing syllabus on Accounting has been divided into two parts. The first part has been named as Accounting in Group I and the second part has been named as Advanced Accounting in Group H. Only on passing Group I of the IPCC will a student be eligible to get registered for articleship, which shall now be for a period of 3 years as against the existing requirement of 3 1/2. Further, under the new scheme, a student will be eligible to sit in the final exam in last six months of his articleship as against the existing condition to sit in final exam only after the completion of articleship.
The new scheme has come into effect from 10th December 2008.However, an option has been given till 30th June 2009to the existing CPT pass students and to those who appeared in CPT examination held on 14th December 2008to choose between the PCC and the new IPCC.Those students who have passed CPT and have not so far got themselves registered for articleship and also those who pass CPT exam held on 14th December 2008, are free and eligible to get registered under the new scheme for the IPCC after the declaration of CPT result without articleship registration. All such students getting registered for the IPCC on or before 31st January 2009 will be eligible to sit in the new IPCC exam scheduled for November, 2009, as they will have completed 9 months of study by that time.
Details of the new course are given in the Notification dated 2-12-2008published at pages 1232-1236 and on pages 1238-1239of C.A. Journal for January, 2009.
5. Internal Audit – Standards & Exposure Drafts (SIA) :
(Note: Page Nos. below are from CA. Journal for January, 2009)
A. Standards on Internal Audit (SIA) :
(i) SIA-9 Communication with Management (Pages 1253-1255)
(ii) SIA-10 Internal Audit Evidence (Pages 1256-1257)
(iii) SIA-11 Consideration of Fraud in an Internal Audit (Pages 1257-1259)
B. Exposure Drafts on Standards on Internal Audit (SIA) :
i) SIA – Using the Work of an Expert (Pages 1286-1287)
ii) SIA- Internal Audit in an Information Technology Environment (Pages 1288-1292)
iii) SIA – Knowledge of the Entity and its Environment (Pages 1292-1294)
6. Auditing Standards and Exposure Drafts:
(Note: Page Nos. below are from c.A. Journal for January,2009)
A. Standards on Auditing (SA) :
(i) SA-230 (Revised) – Audit Documentation (Pages 1260-1265)
(ii) SA-560 (Revised) – Subsequent Events (Pages 1266-1271)
B. Exposure Drafts of Standards on Auditing (SA) :
(i) SA-320 (Revised) – Materiality in Planning and Performing an Audit (Pages 1272-1276)
(ii) SA-450 – Evaluation of Misstatement Identified During the Audit (Pages 1277-1281)
(iii) SA-610 (Revised) – Using the Work of Internal Auditors (Pages 1282-1285)
7. ICAI News:
(Note: Page Nos. below are from C.A. Journal for January,2009)
i) Enhancing Audit Quality:
Some observations made by Financial Reporting Review Board are listed in order to enable members to improve the quality of audit of corporate bodies. These observations relate to major non-compliances relating to :
- AS-18 Related Party Disclosures
- AS-19 Leases
- AS-20 Earnings per Share
- AS-22 Accounting for Taxes on Income
- AS-26 Intangible Assets
- AS-28 Impairment of Assets (Page 1226)
ii) ICAI to be XBRL Indian Jurisdiction
The Institute has been assigned the Indian jurisdiction of XBRL (eXtensible Business Reporting Language) International. Consequently, the Institute will be the Indian entity which will encourage the development and adoption of XBRL in India and will represent the Indian interest at this international level. The Ministry of Corporate Affairs and the various regulators, namely, RBI, SEBI and IRDA are part of the group constituted by the ICAI and are supporting the Institute in this initiative. XBRL is a novel way of communication of business and financial data that is of immense utility to governments, regulators, stakeholders, etc.
iii) Exclusive T.V. Channel for learning:
The Institute is launching an exclusive TV channel dedicated to learning. This channel will greatly boost the ICAl’s credentials as a pioneer in teaching through the distance education mode. This channel will make quality accountancy education accessible to interested students in the country, and will particularly cater to the needs of the students hailing from lower strata of society. This will also help in conducting CPE programmes on a regular basis. These programmes will also be accessible even in remote/far-flung areas of the country.
iv) New ICAI Secretary:
Shri T. Karthikeyan who joined ICAI in 1978 has been appointed as Secretary of the Institute. He has worked in the Institute in various capacities during the last 30 years and gained popularity with the staff, students and members of the Institute by his efficient and dedicated work. In particular, he has thorough knowledge about the CA. Act and Regulations as well as disciplinary cases. We wish him successful term of office as Secretary of the Institute.
v) ICAI Publications:
a) Implementations Guide to SQC-l (Page 1152)
b) Handbook on Foreign Trade Policy and Guide to Export and Import (Page 1242).
