Facts for Prelims (FFP)
Source: LiveLaw
Context: The Supreme Court upheld a regulation by the Institute of Chartered Accountants of India (ICAI), limiting chartered accountants to accepting a maximum number of tax audit assignments per financial year.
What is ICAI?
The Institute of Chartered Accountants of India (ICAI) is a statutory body established under the Chartered Accountants Act, 1949, by the Indian Parliament to regulate the chartered accountancy profession in the country. It operates under the Ministry of Corporate Affairs, Government of India, with its headquarters in New Delhi. As the world’s second-largest professional body of chartered accountants, ICAI is governed by a Council comprising elected and nominated members. Its functions include regulating the profession, conducting examinations and education, providing continuing professional education, formulating accounting standards, ensuring ethical standards, and exercising disciplinary jurisdiction. Additionally, ICAI contributes input on policy matters to the government.
About National Financial Regulatory Authority (NFRA):
It is an Indian body established under the Companies Act 2013 to enforce accounting and auditing standards, oversee auditor work, and recommend standards. It has the authority to investigate professional misconduct by chartered accountants or CA firms, impose penalties, and bar them for up to 10 years.
