India : Report on Observance of Standards and Codes - Accounting and Auditing
This report provides an assessment of accounting and auditing practices in India, within the broader context of institutional capacity available for ensuring high-quality financial reporting. India's accounting profession was among the earliest to develop historically, when the Indian Companies Act was enacted in the mid-l800s, giving the accounting profession its start. Since then, considerable efforts have been made to align India's accounting and auditing standards and practices, with the internationally accepted standards and codes. In order to further improve the quality of corporate financial reporting in India, there is a need to improve the institutional framework, and take steps for enhancing compliance with the applicable standards and rules. Enhanced by significant inputs from stakeholders, this report provides some principles-based policy recommendations aimed at strengthening the corporate financial reporting regime in India. These recommendations specifically focus on strengthening the monitoring and enforcement arrangements. Moreover, suggestions have been made on some important elements for an independent oversight body for the auditing profession, from a public interest perspective. The objectives of the recommendations are to build on the existing system, and promote a gradual process of improvement.
Summary: | This report provides an assessment of
accounting and auditing practices in India, within the
broader context of institutional capacity available for
ensuring high-quality financial reporting. India's
accounting profession was among the earliest to develop
historically, when the Indian Companies Act was enacted in
the mid-l800s, giving the accounting profession its start.
Since then, considerable efforts have been made to align
India's accounting and auditing standards and
practices, with the internationally accepted standards and
codes. In order to further improve the quality of corporate
financial reporting in India, there is a need to improve the
institutional framework, and take steps for enhancing
compliance with the applicable standards and rules. Enhanced
by significant inputs from stakeholders, this report
provides some principles-based policy recommendations aimed
at strengthening the corporate financial reporting regime in
India. These recommendations specifically focus on
strengthening the monitoring and enforcement arrangements.
Moreover, suggestions have been made on some important
elements for an independent oversight body for the auditing
profession, from a public interest perspective. The
objectives of the recommendations are to build on the
existing system, and promote a gradual process of improvement. |
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