NFRA, IICA join hands to launch training modules
New Delhi, Jul 9, 2024
In a first, the National Financial Report Authority (NFRA), the regulator for auditors and audit firms for large and listed companies and Indian Institute of Corporate Affairs (IICA) are joining hands to launch training modules for accountants and auditors as well as independent directors dealing with "public interest companies".
The courses will be counted in the continuing professional learning exercise for chartered accountants, something that was hitherto the exclusive domain of their professional body Institute of Chartered Accountants of India.
The development comes at a time when NFRA has taken charge of the regulatory and disciplining system for public interest companies as govt was of the view that the process followed by ICAI was slow and often auditors got away even for major violations.
So far NFRA has acted against auditors of several companies including IL&FS, Cafe Coffee Day and Reliance Capital, which was once controlled by Anil Ambani and was bankrupt.
The idea is to ensure that the auditors and independent directors are adequately prepared to deal with large companies where there is a large pool of shareholders and at the same time, aided by the new tools, are also able to meet the requirements of global companies and audit firms.
According to the plan drawn up by NFRA and IICA, courses for auditors and accountants will be for nine months and will be an online training module, requiring classes two-three days every week. The course duration for independent directors is expected to be shorter, possibly for three-six months. The entire process is not going to be made mandatory.
The two govt agencies intend to rope in top CAs, industry representatives as well as experts from other countries, including from bodies such as NFRA, to help with the training modules. The courses follow as the continuous learning exercise mandated by ICAI is also seen to be awarding points for activities, which are not always adding value.
[The Times of India]
