Chartered Accountants Amendment Bill introduced by Government

A bill has been introduced in parliament by the government to tighten the disciplinary mechanisms for chartered accountants, cost and work accountants, and company secretaries. The Chartered Accountants, Cost And Works Accountants, and Company Secretaries (Amendment) Bill, 2021, aims to reform and streamline the institutes’ disciplinary process.

Three statutes dealing with these professions, The Chartered Accountants Act, The Cost And Work Accountants Act, and The Company Secretaries Act, will be modified, and members of the institution will ensure that issues are dealt with in a timely manner.

The legislation are intended to address the conflict of interest that exists between the institute’s administration and disciplinary divisions. Firms will now be required to register individually with the relevant institutes and will be subject to disciplinary action.

The councils would have the authority to set various fees, and the Comptroller and Auditor General of India will audit and approve their accounts.