Independence Of CAs Is Important For Integrity Of Financial Statements, Says Nirmala Sitharaman As the adoption of new technology is necessary for a transparent accounting system, the minister said that the accounting fraternity must examine how new technologies such as blockchain, artificial intelligence, data analytics and cloud computing could be employed
By Teena Jose •
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Finance minister Nirmala Sitharaman said that the independence of chartered accountants is extremely important to establish the integrity of financial statements as they are not only responsible for the shareholders but also towards financial institutions, government and retail investors.
While addressing the World Congress of Accountants being held in Mumbai, Sitharaman said that, "Accountants must ensure adherence to fair and transparent practices. So, their responsibility is not just limited to stakeholders but the trust of the stakeholders as well. Also, statutory filings and audit reports are public documents and they are relied on by various stakeholders, including financial institutions, governments, and common retail investors."
Mentioning that the world is going through many challenges, Sitharaman pointed out that multinational organizations such as the United Nations or multinational development banks are looking at resetting themselves for a 21st century world.
As the adoption of new technology is necessary for a transparent accounting system, the minister said that the accounting fraternity must examine how new technologies such as blockchain, artificial intelligence, data analytics and cloud computing could be employed.
The minister said that, "Meaningful generation of information to aid decision-making is going to be so much more machine-driven. Good analytics and discussion on these points would help us find unprecedented opportunities for data analytics to provide us with the solutions for some of the issues which dominate, of transparency or accountability itself."
