ICAI to launch auditing software, speed up convergence

New Delhi, May 17 (UNI) To solve 99 per cent of the problems faced by Chartered Accountants in the country, the Insititute of Chartered Accontants of India (ICAI) will come up with a auditing software 'toolkit' to help them follow best international standards.

The toolkit will be on the lines of the local software developed by ICAI Ahmedabad, ICAI President Sunil Talati said at press meet on 'Path of Convergence with International Standards' here today.

The unrelenting lobbying on convergence of accounting standards the world over has seen many countries adopting the International Financial Reporting Standards (IFRS).

A smiliar debate is heating up on the convergence of the auditing standards of countries to have a high quality International Standard (comprising the engagement standards and quality control standards).

The International Auditing and Assurance Standards Board (IAASB) met the ICAI today to discuss convergence related issues to bring the national auditing standards with the corresponding International Standards.

The convergence issue in auditing primarily deals with having a similar set of auditing standards to enable understanding of audited statements irrespectve of the country.

Convergence envisages a common set a auditing parametres so that the financial statements between countries are easier to interpret.

''Convergence helps capital outflow. Now it's possible to make investment in another with ease because the audited statements are familiar because of a set standard of auditing followed,'' said Executive Director International Federation of Accounts (IFAC) James M Sylph.

This helps to determine if an auditor elsewhere follows the same audting techniques as he does. As companies go global they need a similar standard of audit. For banks its important to have International Standards as their customer wants money to borrow money for investment abroad, added Mr James.

So far, more then hundred countries have adopted the International Standards and IFAC urged to follow the closest mode possible keeping in mind the constrains of each country.

ICAI has recently taken some major steps in order to accelerate convergence with International Standards. It has approved the revised preface to the standards on qualit control, auditing, review, and related issues. The revised preface paves the way for the adoption of Internatinal Standards issued by the IAASB pursuant to its Clarity Project.

The Clarity Project was launced by IAASB after it found the language of the standards as not being precise which lead to a diffrence in interpretation.

At the moment there are 39 International Standards and 35 standards of India are in conformity with the International Standards.

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