19 November 2022: The Comptroller and Auditor General of India, Shri Girish Chandra Murmu today said that the accounting profession has to remain in tune with the technological changes and keep in step with the new disruptive business models of the 21st century. Addressing 21st World Congress of Accountants hosted by the Institute of Chartered Accountants of India in Mumbai, the CAG stated that this is necessary as the economy is going through massive transformation with evolution of new and innovative tools in doing business and these will challenge the conventional accounting traditions and thinking.

The CAG said that “we need sustainable IT governance and prudent financial management to enact large public programmes transparently without running into cost and time delays. Accounting and Audit professionals must take note of these developments to complement the government’s efforts. We have to ensure that we discharge our duties with high ethical, technical and professional standards. Digital assurance will allow auditors to validate for an entire population, which will improve efficient workflow and build trust in financial statements. It is time therefore, for the accountancy profession to take steps towards building high quality integrated reporting and performance statements. It is heartening to note that ICAI has been adopting emerging technologies like block chain, Artificial intelligence, Big Data and is imparting training on those tools”.

The CAG said that hundreds of home grown, small and medium enterprises and young entrepreneurs are creating unicorns which shows a positive signal. They would require especially in their initial days guidance and support from the accounting profession for legal and regulatory compliance, he added.

The CAG said that the issue of sustainable development can no longer be overlooked and accountants and auditors also have an important role to play here to comment not just on legality, propriety, transparency and accountability; but also on sustainability.

Shri Murmu said that the CAG institution has used cutting edge technologies, such as satellite imagery and geospatial analyses to aid audit planning and evidence gathering and its progress in the areas of research and capacity building for information system, data analytics and environmental audits is comparable to the best in the world.

Shri Murmu stated that the CAG shares a long and fruitful association with the Institute of Chartered Accountants of India. “We have also been working together to evolve standards for accounting and auditing, and for improving Quality Reviews for a long time in various committees and this synergy would be instrumental in establishing quality financial reporting and a credible compliance framework. This will not only strengthen corporate governance practices in our country, but also guide us towards realising the country’s economic and social objectives”, he added.