Newly elected ICAI President Charanjot Singh Nanda on Wednesday emphasised the importance of maintaining a cordial working relationship with the National Financial Reporting Authority (NFRA) while asserting that ICAI’s role and perspectives must be acknowledged and respected.
“I want to maintain a very good relationship with NFRA, and there is no issue between us. But our working (of CAs) and views have to be appreciated and respected,” Nanda said.
His remarks come against the backdrop of certain long-standing differences between ICAI and NFRA on various regulatory and professional matters, most recently over Standard on Auditing (SA) 600, which pertains to group audits.
Differences over SA 600
The NFRA had earlier criticised ICAI’s revised SA 600, arguing that it did not fully align with international standards and failed to strengthen accountability in group audits. ICAI, on the other hand, defended its approach, stating that the standard was developed considering India-specific nuances and practical realities.
This is not the only area of divergence. The two institutions have also in the past clashed over audit quality reviews, with NFRA pushing for stricter oversight, while ICAI has maintained that regulations must be balanced with ground realities.
“We have 4 lakh chartered accountants on the ground. We understand the customs and conventions of the country very well,” Nanda said, highlighting ICAI’s deep-rooted expertise in auditing and financial reporting.
Despite these differences, ICAI remains keen on working constructively with NFRA. However, the institute expects that its domain expertise and regulatory role will not be undermined.
Work-Life balance panel
Apart from regulatory issues, Nanda announced a major step towards improving work-life balance for CA professionals, employees, and articleship students. ICAI has set up a Work-Life Balance Committee to address concerns related to long working hours, high stress levels, and mental well-being.
“Work-life balance is a critical issue in today’s professional environment, and we want to ensure that our members and students can work efficiently without burnout and have a healthy work-life balance,” Nanda said.
This move comes amid growing concerns about rigorous work schedules in the auditing and accounting profession, particularly for young CAs undergoing articleship training.
Disciplinary Powers
On the contentious issue of ICAI empowering itself to take disciplinary action against audit firms, Nanda clarified that the matter can only be deliberated by the Central Council after the Ministry of Corporate Affairs (MCA) notifies the necessary provisions under the Chartered Accountants Act.
“It is only after that will Council deliberate on this and decide the way forward. The ball is in MCA’s court”, Nanda added.
