Cabinet approves MoU between India and Kuwait in the field of accounting, finance and audit knowledge base

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Memorandum of Understanding (MoU) for capacity building and strengthening the accounting, financial and audit knowledge base in Kuwait.

Benefits:

The MoU entails that two entities of India and Kuwait which are:

i. Institute of Chartered Accountants of India (ICAI) and Kuwait Accountants and Auditors Association (KAAA) will work together to hold and conduct technical events, seminars and conferences in Kuwait for the benefit of both organizations’ members and development of their professional expertise. Costs will be shared as agreed in writing by both parties for each event.

ii. ICAI and KAAA shall work together for establishing possible cooperation in respect of Corporate Governance, technical research and advice, quality assurance, forensic accounting, issues concerning Small and Medium-sized Practices (SMPs), Islamic Finance, Continuing Professional Development (CPD) and other subjects of mutual interest. Both ICAI and KAAA will implement and support provisions of the MoU for cooperation, advancement of accounting knowledge, collaboration to hold professional development and technical events, seminars and conferences. KAAA will provide venue for such events and will encourage its students and faculty members to attend these events.

iii. Under the proposed provisions of the MoU, ICAI and KAAA will aspire to discuss potential future developments in the area of mutual collaboration. In the first instance these discussions will be based on gaining an insight into the structure and cooperation, external regulatory and self-regulatory framework and measures governing both the profession and the members of both the organizations. This will be in the interests of improving governance and effectiveness of their respective organizations.

iv. KAAA and ICAI will collaborate to offer short-term professional courses in the domain of accounting, finance and audit in Kuwait for Kuwaiti nationals and members of the ICAI.

v. ICAI and KAAA will take appropriate steps and measures to work together for establishing possible cooperation in the identified areas of mutual interest. ICAI will offer technical programs to employees of Kuwait Government/Ministries/KAAA members and Kuwaiti Nationals in collaboration with KAAA.

vi. In Kuwait, the Indian Chartered Accountants fraternity is helping the local business community and stakeholders on Financial Reporting matters and is held in high esteem. The proposed MoU is expected to consolidate the trust and help to build a positive image for the Indian Chartered Accountants in Kuwait.

Justification:

a. ICAI has a strong membership base of over 6000 members in the Middle East region and the contemplated MoU for providing assistance to KAAA, Kuwait shall benefit the ICAI members in the region and would provide an additional impetus to the prospects of the ICAI Members.

b. The aim of the MoU is to work together to develop a mutually beneficial relationship for the best interest of ICAI members, students and their organizations.

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VRRK/SC/SH