CA PROFESSION-ADVENT ON NEW OPPORTUNITIES
- Sh. Jairam Ramesh, Cabinet Minister for Rural Development, Government of India has recently directed a detailed audit of all "Panchayat Institutions" to be conducted by Chartered Accountants through a panel to be prepared by CAG. This is a highly appreciated step. The Minster has, on number of occasions, raised objections on mis-utilisation of money allocated to various social schemes. It is highly recommended that NAREGA (National Rural Employment Guarantee Scheme); Serv Siksha Abhiyan, Mid Day Meal, Angan Wadi, Milk Distribution Scheme, Jawahar Rozgar Yojna and various other schemes for which government funds are allocated are also made subject to audit by chartered accountants.
- It may be noted that CAG has recently adversely commented on the working of railways, indicating requirement of a detailed audit for all government departments at the Central Government level as well as State Government level. The Government should immediately act upon it and services of practicing chartered accountants may be utilised in these areas.
- At the same time, it is important that audits are allocated to younger members, smaller firms including proprietorship's and firms in smaller towns. The empanelment criteria need to be different as compared to audit of PSUs and priority is to be given to those who are not allocated PSU audits.
Bank Audit
It is very heartening to note that the Chartered Accountant community has undertaken audit of public sector banks in a very detailed manner and the reports submitted by the auditors have contributed very significantly to the financial discipline of public sector banks this year. It is important for all chartered accountants to communicate the contribution of the profession to all influential persons in the society to ensure that not only the attempts to destabilize are countered but also we can impress that like a successful and detailed audit being done in respect of public sector banks Reserve Bank of
India, IRDA and Securities and Exchange Board of India can be impressed that even private sector banks, mutual funds, insurance companies and similar other entities where large public funds are involved, a detailed audit, involving a larger number of chartered accountants is required to be
undertaken on the basis of empanelment through ICAI so that corruption, malpractices, non adherence to regulatory guidelines can be examined in detail and proper discipline can be inculcated.
Tax Audit
The recent reports and discussions on misuse and non adherence of maximum limit of tax audit by certain section of chartered accountants or by the assessees, require detailed monitoring at the end of the Institute so that -
- Tax Audit Reports duly signed are required to be enclosed with the Income Tax Return;
- Limit on maximum number of audits is monitored by the Institute on the basis of information received from CBDT;
- The current malpractices of using membership number of chartered accountants who have already expired or using the membership number of a member without conducting the tax audit can be eradicated.
Tendering
The process of tendering by government departments has brought in larger number of new avenues which are being uploaded on pdcicai.org. The process will require certain minimum threshold professional fee level as self-regulatory measures in the code of ethics and members are requested
to keep adequate margin to enable high value addition.
Minimum recommended scale:
The members should more and more use the recommended fee scales published by the Institute, as minimum benchmark for providing various professional services. These minimum recommended fee levels are available at the website of the Institute. At the same time, the incoming auditor must communicate with the previous auditor as to the reasons for dis-continuation and as a self regulatory measure, reduction of fee beyond minimum recommended scale should lead to not
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