Message from Chairman, Committee on Information Technology - February 2010
Dear Members,
It is indeed a great pleasure and privilege for me to assume the office of
Chairman, Committee on Information Technology to further the interests of the
profession in this evolving field which is very close to my heart. I
acknowledge the efforts put in by the outgoing Chairman, CA. K. Raghu,
Committee members and Committee Secretariat. I request your support with the
same zeal in my fifth innings as IT Committee Chairman.
I am extremely glad to note the progress made by the Committee and the
increasing interest and support of members to the initiatives of the IT
Committee. Technology plays a major role in facilitating all functions of
business in this era, not just in transaction capturing and processing but even
in lesser known areas like Corporate Governance and Risk Management. There is
no doubt that Chartered Accountants with ISA qualification will play a major
role in Information Systems Audit (ISA) in the coming years..
The technology revolution in the 20th century, particularly last 10 years, is a
re-enactment of the Industrial Revolution that happened 150 years ago- with
lessons that are valid even today. The Industrial Revolution was propelled by
innovations but now the rules are being rewritten, powered by silicon chips and
Internet bandwidth. With changing paradigms, knowledge and experience in
technology are not merely desirable, but basic requirements for not only growth
and even survival in the evolving global village.
Information Technology has evolved from a humble role of business enabler to
business driver - the IT Wave is driving businesses today,
www.amazon.com, the largest supplier of books in the world does not (a)
make sales over-the-counter, (b) have any stores in prestigious malls around
the globe, (c) have large warehouses or (d) large staff.
We have to change with the changing times by adopting Information Technology to
improve efficiency and effectiveness of our operations (ERP/ CAAT/ GAS/
Practice Management Software), and also offer value added services (Systems
& Process Assurance/ IS Audit, Consultancy, e-governance) which are in
increasing demand.
Technology education is now becoming a must! While the need to develop
technologically is quite obvious, I would like to present a few reasons, which
are somewhat different:
1. Find out how to use available technology: This is pertinent
as it is estimated that only 5% of technology currently available is being used
fully. Just reflect on this - Carrier never invented the dehumidification
technology for air-conditioning! The IBM founder thought there was room only
for a handful of computers in the world!
2. Find out where to use Information Technology (IT): Match
business needs and the right technology. Michael Hammer once said: 'People who
develop software do not know what we need; we do not even know what we need
until it is here.'
3. Find out how to get ROI (Return On Investment) from IT: As
accountants, this is very important -technology is an enabler, not the end
result.
4. Find out how IT can be integrated and standardised. Integration
is the biggest business in IT these days. If things can be standardised from
the beginning, there will be no need to 'integrate' separately later.
5. Find out the latest happenings in IT: "Technology always
seems to move faster than our ability to understand what to do with it; and the
pace seems to be accelerating". We need to be at the cutting edge of
technology, as we need to be 'awake' to the world we're building, and not, as
an old Sufi saying goes, merely be asleep in life's waiting room.
"...A
crucial turning point comes when one is able to acknowledge that modern
techniques, much more than politics as conventionally understood, now
legislates the conditions of human existence". -Langdon Winner
The CIT would endeavor to take on IT challenges and convert them into
opportunities for the profession. The IT Committee would be focusing on the
following areas this year:
1. Professional opportunities for ISA qualified members:
The Committee is to advocate compulsory use of ISA qualified members for Audit
of Systems in large listed companies with SEBI and the stock exchanges in
respect of brokers, all banking and large non-banking financial institutions to
provide increasing impetus and recognition to the ISA Course. The Committee
should draw a framework for IS Audit prescribing the templates for engagement/
reporting/ performance, minimum fee structure and so on by constituting a study
group for this purpose.
2. Practical Training/ Workshops: The IT Committee would
provide practical training/ workshops for hands-on experience in following
emerging IT areas: IS Audit of Banks/ Banking Applications/ IS Audit of Stock
Brokers/ Using CAAT's/ Using MS-Excel as at tool for Financial Analysis/ Audit/
E-Governance/ Network Security Audit & Review/ IT Enabled Services (ITES)/
ERP and so on.
3. Track Technology Developments for impact on profession:
The Committee will monitor constantly technological developments and their
impact on the profession in terms of opportunities to render services. It is
proposed to communicate these to members through the Institute Journal at least
once every quarter. One of the areas highlighted by the committee is offshore
audit, wherein accounts are audited in the country for overseas clients using
digitized data.
4. ISACA MOU: ISACA's Standards and Guidelines are
widely used all over the world in IS Audits. The adoption of these standards,
guidelines and procedures by ICAI and making them available for DISA members
will enable Audits to follow internationally accepted standards and guidelines
and bring increased global acceptability of DISA qualification in carrying out
IS Audits.
5. Integration of the profession with global imperative:
ICAI would be making Strategic collaboration with relevant International Bodies
for exposure of the accounting profession in India to the best practices
followed worldwide, knowledge networking, and also emphasising on creating a
pool of 'Trainers' for the entire country to establish convergence with
International Standards and promoting compliance.
6. Webcasting Channels: IT Committee would be
developing the webcast studio and organizing as many webcast as possible so
that these events could be brought to every member at their door step.
7. Forensic Accounting and Fraud Detection: The
Committee has started "Certificate Course on Forensic Accounting and Fraud
Detection using IT and CAAT's". The course aims to develop investigative skills
required to uncover corporate/ business fraud, measure resultant damage,
provide litigation support/ outside counsel by applying accounting, auditing
principles for the detection of frauds.
8. ERP Course: Identified IT Enabled Services
(ITeS) as the thrust area for the development of the profession, after the Post
Qualification Course (PQC) on Information Systems Audit (ISA). As a part of
this initiative, education and training programmes in ERP have been started on
SAP FA & MA Version ECC 6.0 & Microsoft Dynamics NAV through M/s(s).
SAP India and Microsoft. These courses provide world class training through OEM
vendors at subsidized rates and convenient scheduling.
9. Promotion of XBRL - Financial Reporting Language:
The Institute is spearheading the XBRL initiative in India to promote greater
use of the new financial reporting language. ICAI is currently establishing an
Indian Jurisdiction for XBRL International. The Committee has planned to
develop XBRL technology tools to make financial statements XBRL compliant. XBRL
Seminars & Conferences will be conducted to promote awareness among the
members about the new reporting language since XBRL implementation would be a
new professional opportunity and members can assist companies in XBRL filings
with various regulators.
10. e-Learning Courses: IT Committee has launched
(a) Online e- Learning Courses on (i) Service Tax, (ii) IFRS and (iii) Transfer
Pricing and (b) e-Learning CD's on (i) Using CAATs/ GAS, (ii) Using MS- Excel
2007 as an Audit Tool,(iii) Bank Branch Audit, (iv) IS Security, Cyber Threats
& Review - An Intro., and (v) Windows, Network & Wi-Fi Security - An
Intro., which provide members to develop competencies at their convenience and
pace.
11. Impetus to research activities: IT Committee
would be conducting Research activities for identifying the accounting needs of
informal and tiny sectors, particularly any rural areas and promoting IT based
simple accounting solutions.
12. Project Parivartan (Improving e-governance in ICAI):
The Committee has conceived Project 'Parivartan' with an idea of taking ICAI to
a new way of working that would bring Chartered Accountants and CA students in
the country as a CA Pariwar. The goal is to create a single tightly integrated
IT system for catering to the entire community of Chartered Accountants and
students irrespective of their geographical locations through the Internet.
Accordingly, Parivartan Workshops are being organized at Regional Offices and
Branches to get feedback from members and students. This project is being
spearheaded by Infosys Technologies Ltd - a world leader in IT with a mandate
to transform ICAI to a world class tech-savvy accounting body in the world. The
parivartan project report is currently under consideration.
Please do visit the CIT Portal at http://cit.cai.org regularly
to keep abreast of the latest developments and initiatives of the Committee on
Information Technology in this regard.
Wishing you all the very best,
CA. S. Santhanakrishnan
Chairman
Committee on Information Technology
16th February, 2010
New Delhi
e-mail: itech@sandsca.com
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