|
PROFESSIONAL NEWS
|
ACCOUNTS
|
CORPORATE LAW
|
FEMA
|
ICAI
|
INCOME TAX
|
MISCELLANEOUS
ICAI
- Latest on Code of Ethics from Council
The Institute came across certain Circulars/ Orders issued by the Registrars of various State Co-operative Societies wherein it has been mentioned that certain amount of audit fee is payable to the concerned State Government and the auditor has to deposit a percentage of his audit fee in the State Treasury by a prescribed challan within a prescribed time of the receipt of Audit fee. Recently, the Council considered the issue and while noting that the Government is asking auditors to deposit such percentage of their audit fee for recovering the administrative and other expenses incurred in the process, the Council decided that as such there is no bar in the Code of Ethics to accept such assignment wherein a percentage of professional fees is deducted by the Government to meet the administrative and other expenditure of Members as on 1.4.2003.
- INVITATION TO JOIN AS PART TIME RESEARCH ASSOCIATES FOR VARIOUS RESEARCH PROJECTS OF THE INSTITUTE.
The Research Committee invites applications from chartered accountants having excellent academic background and written communication skills, with about 3 to 5 years experience, who are willing to associate themselves, on part time basis, to assist the Committee in finalizing the drafts. The work will involve providing technical inputs relevant to the projects, finalizing the publication on the basis of the decisions taken by the Research Committee and making the publication ready for printing. Those interested may send their bio-data, alongwith the expected remuneration and an indication of the time that the person would be able to devote on weekly basis, to the Secretary, Research Committee, The Institute of Chartered Accountants of India, Indraprastha Marg, New Delhi 110002, latest by April 20, 2003.
- INVITATION OF PARTICIPATE IN VARIOUS RESEARCH PROJECTS OF THE INSTITUTE
The Research Committee of the Institute of Chartered Accountants of India is presently looking for experts having experience in the relevant areas for preparing the drafts of the research projects inter alia on the following subjects:
1. Environmental and Energy Audit
2. Guidance Note on Accounting by Retirement Benefit Plant
3. Guidelines on Internal Audit- Textile Indutry.
4. Technical Guide on Accounting and Audit of Lottery Business.
The last date of submission of applications is 21st of April2003. (For a full list of topics and eligibility criterion, please log on to institute’s website www.icai.org)
- TECHNICAL GUIDE ON ACCOUNTING AND AUDITING IN NOT-FOR-PROFIT ORGANISATIONS
The Research Committee of the Institute of Chartered Accountants of India has published ’Technical Guide on Accounting and Auditing in Not-for-Profit Organisations’. The Guide primarily focuses on suggesting a standardised framework for preparation and presentation of financial statements of NPOs so that they are able to meet the common information needs of various stakeholders. The Guide also discusses audit aspects and certain other facets of the NPO sector such as peculiar features, operational aspects and applicable legal requirements. ,The Guide is priced at Rs. 125/- and is available for sale at the sale counter of the Institute at New Delhi as well as at its regional offices located at Chennai, Mumbai, Kolkata and Kanpur. It may also be obtained by unregistered parcel by paying postal and handling charges of Rs. 19/- (Rs. 17/- may be added extra, if required by registered parcel)
- GUIDELINES ON INTERNAL AUDIT TOURS AND TRAVEL SERVICES
The Research Committee of the Institute of Chartered Accountants of India has published ’Guidelines on Internal Audit - Tours and Travel Services’. The Guidelines cover technical and operational aspects of an entity engaged in the business of providing travel services insofar as they are relevant to internal audit. The Guidelines also discuss the areas which are exposed to control risk and, thus, require special considerations of the internal auditor. The Guidelines have ten appendices containing information and/or formats of various statements/reports which would be useful to the internal auditor. One of these appendices contains an internal audit checklist. The Guidelines are priced at Rs. 50/- and are available for sale at the sale counter of the Institute at New Delhi as well as at its regional offices located at Chennai, Mumbai, Kolkata and Kanpur. These may also be obtained by unregistered parcel by paying postal and handling charges of Rs. 19/- (Rs. 17/- may be added extra, if required by registered parcel).
- ”CHARTERED ACCOUNTANTS DAY”
In commemoration of the Chartered Accountants Day a NATIONAL SEMINAR on ”Reforms in Financial Sector - Way Forward” is scheduled to be held on Saturday, the 5th July, 2003 in Convention Hall, Hotel Ashok, New Delhi, in the forenoon. While the details about the Seminar such as topics to be discussed and the names of the Speakers etc. will be hoisted on the Institute’s Web Site www.icai.org shortly, for advance information of the members, it is hereby announced that the august gathering will be addressed among others, by Dr. Bimal Jalan, Hon’ble Governor, Reserve Bank of India, at about 10.30 A.M. on that day. Members interested in further details of the Seminar may contact - Shri T. Karthikeyan, Additional Director at Headquarters. His contact Numbers are: 2337 8402, 2337 8316, E-mail: karthik@icai.org
- CONSULTATION ON THE WTO NEGOTIATIONS UNDER THE GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)
The current round of negotiations, as mandated under the General Agreement on Trade in Services (GATS) for further liberalisation of international trade in services and rules thereunder, commenced on January 1, 2000 and is likely to continue upto January 2005. The main objective of the negotiations is to liberalise commitments in all the service sectors and all the modes of supply of services and to improve the multilateral rules for trade in services. The Department of Commerce, Ministry of Commerce and Industry, Government of India has prepared a Paper on ” Consultation on the WTO negotiations under the General Agreement on Trade in Services (GATS)” summarising the ’Requests’ received from various member countries, the requests made by India to trading partners and the level of commitments given so far. The same are available at website of the Department of Commerce at http://commerce.nic.in/wto_counsel_paper.htm The said Requests are for different Professional Services including Accountancy Sector. Members and Stakeholders may like to offer their suggestions/views to Department of Commerce as per the details available at the above site and are also requested to forward a copy to the Institute at E-mail ID rakeshsehgal@icai.org
- ROUND TABLE ON INSURANCE SECTOR
The Committee on Insurance of the Institute is to organize a half-day Round Table on Insurance sector on Friday, the 6th June 2003 at Hotel Grand Kakatia Shereton, Hyderabad. The Round Table will be attended by the Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs) of the insurance companies and intermediaries. The Indian insurance industry has, with its growth, been witnessing the increase in the sectoral complexities and the same ought to be comprehended and disentangled by the professionals. The Round Table, which is an endeavour in this direction, will be attended by the professionals who will ponder over the following issues of contemporary relevance and those demanding pro-active brainstorming
· Strategic Perspective on development of insurance sector
· Corporate Governance issues and Audit Committees
· Managing Risk in insurance sector
· Reforms in insurance sector
Shri N Rangachary, Chairman, Insurance Regulatory and Development Authority (IRDA) shall deliver the keynote address and the members of the Authority will be participating in the deliberations.
- CLARIFICATION ON PAYMENT
“Under clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949, the members are prohibited from soliciting clients or professional work either directly or indirectly by circular, advertisement, personal communication or interview or by any other means. In the Code of Ethics, 2001 edition, the Council laid down its guidelines/directions for responding to tenders, advertisements and circulars. The same are published in para (d) under clause (6) of Part 1 of the First Schedule to the Act at Page 61 of the Code of Ethics, 2001 edition. While deciding to continue the existing position that the members should not respond to Tenders, Advertisements and Circulars, the Council also considered the requirements of the Government Agencies of inviting tenders/queries in order to maintain transparency and financial discipline at their end. Appreciating the aforesaid requirements of such organisations and to ensure a level playing field, the Council has decided to substitute the existing guidelines contained in said para (d) by the following: -
Para (d) : Responding to Tenders, Advertisements and Circulars.
The Council is of the opinion that members should not: -
i. respond to advertisements inviting applications for appointment of auditors;
ii. respond to tenders or circulars inviting quotations for professional services restricted to chartered accountants either by statute or in terms of tender or circular; and
respond to an enquiry asking for quotation of fees in circumstances indicating that such enquiry has been made to more than one members and as such the same partakes the nature of a circular or tender. The Council is of the opinion that while no relaxation should be given in the matter of responding to tenders in the audit field which is exclusive to chartered accountants, in other areas where members compete with non-chartered accountants, the restrictions be relaxed. Further, in audit field which is exclusive for Chartered Accountants, when the services are to be provided to Government Agencies, they seek tenders/quotations to ensure transparency and financial discipline in their organisation. Considering this, the Council is of the opinion that the restrictions in such cases may also be relaxed.
In view of the above, the following relaxations are permitted:-
i. When the matter relates to audit and related services as defined in the ’Framework of Statement on Standard Auditing Practices and Guidance Notes on Related Services’ which as per law can be provided only by chartered accountants, the members are permitted to respond to such advertisements/queries/ circulars/tenders if the same has been sought by World Bank/International Monetary Fund/Asian Development Bank or other similar International Body/any Government Company or Agency/Autonomous Body sponsored or regulated by the Government/Nationalised Institution or any other similar body which the Committee on Ethical Standards & Unjustified Removal of Auditors(CESURA) may from time to time prescribe.
ii. In case of any other services, including audit services to be provided out of country, the members are permitted to respond.
While responding, the members are advised to ensure that, amongst others the provisions of Clause (12) of Part I of the First Schedule to the Chartered Accountants Act, 1949 are not violated. Attention of the members are also drawn to (i) the notification no. 1-CA(7)/29/95 dated 1st March, 1995 issued by the Institute regarding restrictions on minimum fees and (ii) the scale of fees recommended by the Institute as self regulatory measure as appearing in Code of Ethics.” (Ref. Page 661 in December, 2002 issue of the Journal) The Institute came across various Tenders/Advertisements/ Circulars wherein Government Agencies while inviting tenders/quotations, ask the members to purchase the priced tender/quotation documents and/or to deposit Earnest Money/Security Deposits. Recently, the Council considered the issue and while noting that the Government Agencies are asking the members to purchase tender/quotation documents and/or to deposit Earnest Money/Security Deposit while responding to tenders/advertisements/ circulars etc., the Council decided that: -
i. Members are permitted to pay a reasonable amount as price for tender/bid document;))
No earnest money/security deposit is permissible in areas which are exclusive to Chartered Accountants as per law, and in other areas which are open to both Chartered Accountants and other professionals, members are permitted to pay earnest money/security deposit at their discretion.
|
|
