Finance minister Nirmala Sitharaman on Thursday called on chartered accountants to adequately familiarise themselves with new and growing areas of auditing, including ESG (environmental, social, and governance) and carbon accounting.
Addressing an event of the Institute of Chartered Accountants of India (ICAI) in Bhubaneswar, the minister said fast adoption of technology by these professionals will come in handy in such efforts. Developing expertise in new areas will help not just their clients but also the broader ecosystem, she added.
The minister said the free trade agreement (FTA) with the UK, which is being negotiated by the commerce ministry, will have much for the Indian chartered accountants to benefit from if they can leverage it well.
Earlier this year, ICAI president Aniket Sunil Talati said the chartered accountants’ body had decided to endorse proposals to allow auditors from the UK and Canada, with which FTA talks are going on, to practise strictly on “reciprocity basis”.
The minister also dwelt upon the mutual recognition agreements that the ICAI has got into with the top auditing bodies of various countries. These include Canada, Australia, New Zealand, South Africa, Ireland, the UK and Malaysia.
Sitharaman also highlighted the growing importance of digitisation, saying it has led to greater financial literacy at low costs, brought in transparency in the system and also enabled retail investors to get into the stock markets.
“Thanks to technology, the traditional image of accounting as a tedious process is rapidly changing,” she said, calling it a good sign. The adaptation of technology is also crucial as it improves productivity, she added.
