In efforts to curb the menace of corporate misdoings, apex body of chartered accountants ICAI will come out with guidelines for its members on various aspects of effective internal financial controls and possible frauds.

In this regard, the Institute of Chartered Accountants of India (ICAI) is working closely with the Corporate Affairs Ministry.

K Raghu, the newly elected President of ICAI, today said the institute is working on preparing guidelines for its members on frauds.

The initiative comes against the backdrop of new reporting requirements for statutory auditors under the Companies Act 2013. The requirements mainly pertain to reporting on operating effectiveness of internal financial controls and cases of suspected frauds.

Projects have already been taken up to develop appropriate guidance for auditors in this regard.

In recent times, many instances of corporate misdoings and financial frauds have come to light.

Addressing a press conference here, Raghu said that ICAI has certain concerns regarding the new Companies Act. These pertain to the proposed National Financial Reporting Authority (NFRA), reporting on fraud by the auditor, cap on number of audits and restriction on auditors from rendering certain services.

On NFRA, the institute is of the view that multiplicity of regulators would lead to duplication of work.

"Constitution of NFRA would definitely lead to duplication of our self-regulated authority and autonomy in the field of accounting and auditing," ICAI said in a statement.

"The wide and sweeping powers which NFRA has under the section is likely to pose serious problems not only in the administration of corporate affairs but also the functioning of other institutions," it added.

The new companies law was approved by the Parliament last year and the Corporate Affairs Ministry is currently in the process of finalising rules related to various provisions.

Noting that ICAI has mapped its concerns over the matter besides having discussions with the Corporate Affairs Ministry, Raghu said the institute has requested for keeping the "NFRA rules in abeyance" for now.