Transforming Audits: ICAI Introduces New Information Systems for Next-Gen CAs:

Transforming Audits: ICAI Introduces New Information Systems for Next-Gen CAs The Institute of Chartered Accountants (ICAI) is all set to launch new Information Systems Audit Standards to help CAs assess IT risks such as cyber threats, data breaches, and system failures. These standards will apply across industries as businesses increasingly depend on digital platforms, ERPs, and cloud systems. said its president, Charanjot Singh Nanda. The main aim of this is to enhance financial reporting, fraud detection and compliance with laws like India's DPDP Act and GDPR, enabling CAs to expand expertise in IT audits, cybersecurity reviews and governance frameworks. These standards will also be applicable to financial audits of companies in other sectors. Last year, both (the Comptroller and Audit General) called on auditors to upskill themselves consistently to make sure that the relevant and actionable inputs are given to all the stakeholders on controls related to information security, data privacy and transparency.

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The new standard will also provide a structured approach for estimating the integrity, confidentiality and availability of IT systems. Several laws and regulations, such as the Digital Personal Data Protection Act in India or GDPR globally mandate IT audits and data protection compliance. So, ICAI plans to qualify CAs through these standards in meeting their different tech-related regulatory requirements. These will help CAs to offer value-added services and increase their professional expertise in system audits, IT government assessments, cybersecurity reviews and others. India's startup ecosystem has exploded in recent years. The fintech sector is also growing rapidly. The number of startups recognised by the industry ministry shot up to 157,706 by the end of 2024 from 502 in 2016. The fintech sector is expected to grow to $420 billion by 2029 from about $110 billion last year.