The Institute of Chartered Accountants of India (ICAI) is set to introduce new Information Systems Audit Standards to improve audit practices for start-ups, fintech companies and e-commerce businesses, reported the Economic Times.

ICAI president Charanjot Singh Nanda told the publication that these standards will help chartered accountants (CAs) identify IT-related risks.

These risks include cybersecurity threats, data breaches and system failures during audits.

Nanda added that the new standards will also provide recommendations for mitigation.

These standards will also be applicable to financial audits across different sectors, reflecting the increasing reliance on technology in contemporary business operations.

“With businesses relying heavily on digital platforms, ERPs [enterprise resource planning] and cloud systems, traditional financial auditing is no longer sufficient,” another person familiar with the initiative told the publication.

The new standards are expected to offer “a structured approach for evaluating the integrity, confidentiality and availability of IT systems”, the source added.

In light of various regulations including the Digital Personal Data Protection Act in India and the General Data Protection Regulation internationally, the ICAI aims to prepare CAs to assist organisations in meeting their compliance requirements related to technology.

The forthcoming standards will focus on effective financial reporting, fraud detection and prevention, and the establishment of strong governance frameworks, among other areas.

These developments will enable CAs to provide additional services and expand their expertise in system audits, IT governance assessments, cybersecurity evaluations and ERP implementation audits.

Last year, India’s Comptroller and Auditor General encouraged auditors to continuously enhance their skills to ensure that “relevant and actionable inputs are provided to all the stakeholders on controls related to information security, data privacy, transparency”.