Can we Check out of Legislative sphere without risking our to derecognition.

13 June 2007 |

Accountants today across the globe are what the legislation want them to be. In our attempt to our emphasise our role as business manager/process manager/financial engineers do we have an option to exit out of legislative zones.

Take for instance if ICAI decides tommorrow to derecognise itself from Statutory financial audit and taxation role what is left is a simple Post graduate qualification in Accounting with its members. Then the question arises do accounting need accountants in business. In todays IT world a physical accounting qualification is almost not necessary ofcourse there will be a lot of back up exercise but they are one time with few manning (rather miniscule) which means Accounting perse works on legislative sanctity and compliance requirement as somebody the other day said if there were not 2 million pages of Accounting standards probably its conformance certification would not have been a must.

Well a question may be asked what if the stakeholders other than legislators want accounting the answer is then tailor amde accounting and not compliance accounting. Auditing being a corollary to existing of accounting would not have survived in this manner. It is a bid question if sec 209 drives ICAI/ICWAI and keeps them kicking the answer is to a large extent true for both the institute.

At this point of time if one suddenly visualises the potential of members of ICWAI/ICAI as more than just a legislative accountant then watch out the profile of both the institute and appreciate who has to re-jig. Members of ICWAI(98%)in the industry and ICAI(35%)in the industry. But this is a partial story practising ICAI members in large numbers are in accounting zone specially in SME segment.

If ICWAI suddenly thinks that we have to focus ourself as Business managers and not simple accountants fine they are free to think so but how come such a thought blocks progress in Legislative sphere to such an extent that ICWAI has to exit from Legislative support is Big question to be pondered upon by the stake holders (40000+200000+industry+GOI) and not just the council or a part of it. A plebisite ofcourse is a must.



Are we prepared?





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