CAG Murmu says the accounting profession must align with disruptive new business models

JC Murmo, Comptroller and Auditor General of India (CAG) said on Saturday that the accountancy profession has to not only keep pace with technological changes but also keep up with the disruptive new business models of the 21st century.

Addressing the 21st World Congress of Accountants, organized by the CA Institute in Mumbai, Mormo emphasized that the economy is undergoing a massive transformation with the development of new and innovative tools in doing business.

“These are going to challenge traditional accounting conventions and thinking. For example, there is this new balance sheet issue where companies that barely have any physical assets or employees have multibillion-dollar revenue streams. An example of this is hotel room and cabin pools,” Mormo said.

He also said that there are many other challenges affecting the global value chain, especially international transactions – examples include the emergence of cryptocurrency and the challenges of obtaining untraceable financial transactions that will be a major challenge in financial audits.

“Today we need to constantly search for reliable tools to meet the challenges arising from the development of trade and tariff regimes and the emergence of digital assets that require a credible accounting environment. We need accountants who can contribute to the creation of sustainable businesses by leveraging emerging tools and innovations in public financial management to promote growth mass,” Mormo added.

Mormo also stressed the need for sustainable IT governance and prudent financial management to transparently enact large public programs without exposure to costs and time delays. .

Accounting and auditing professionals should take note of these developments to complement government efforts. We must ensure that we perform our duties with high ethical, technical and professional standards. Digital assurance will allow auditors to validate the entire community, which will improve efficient workflows and build confidence in financial statements.

Mormo added that it is time for the accounting profession to take steps towards building integrated, high-quality performance reports.