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, Comptroller and Auditor General of India Girish Chandra Murmu said on Saturday.
Addressing the 21st World Congress of Accountants hosted by the Institute of Chartered Accountants of India, putting spotlight on "Building Trust and Enabling Stability, he said 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.
There are many other challenges which impact the global value chain, especially international transactions; an example being the emergence of crypto currency and the challenges of capturing untraceable financial transactions which will be a huge challenge in financial audits.
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 Blockchain, Artificial Intelligence, Big Data and is imparting training on those tools."
Murmu 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.
He also 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.