UDIN – A Report: ICAI

Unique Document Identification Number (UDIN) – A Landmark Reform

Today Chartered Accountants have an important role in our economy. The business organizations, industry and the Government rely upon the certification and assurance given by the Chartered Accountants for sound financial accounting, reporting, and effective financial management. Chartered Accountants (CAs) with their strong expertise render high-quality services that ultimately benefit the economy. They work with independence, integrity, and excellence. Sometimes, non-CAs misrepresent them and authenticate documents as CAs thereby misleading the stakeholders.

ICAI, as a part of its role in aiding proactive process towards a partner in nation-building and for better governance and regulation for the very first time in the world, came out with an innovative concept of Unique Document Identification Number (UDIN).

ICAI, being the regulator of the Chartered Accountancy profession in India have a robust system to ensure various compliances. ICAI not only entertains complaints from Stakeholders/ User Groups but also takes suo moto action in cases that are brought to its knowledge through external information. The Regulatory system includes the Ethical Standards Board, Financial Reporting Review Board, Peer Review Board, Quality Review Board, and Disciplinary Directorate.

It is envisaged that UDIN Directorate will emerge as another Regulatory and Monitoring tool for effective compliances.

About UDIN

UDIN is an 18-digit number which can be obtained through UDIN Portal and is unique for every document registered by practicing Chartered Accountants on the portal.

UDIN portal allows only CAs who are in full-time practice to register themselves on UDIN Portal ( i.e. https://udin.icai.org/ ). Thereafter, UDIN can be generated by providing certain key fields from the said document/ certificate/report.

Need of UDIN

ICAI noticed that on many occasions Non-Chartered Accountants are signing the documents, reports, and certificates in the name of Chartered Accountants without their information which are misleading to the Regulators & Third Parties.

To curb this malpractice of misrepresentation of Chartered Accountants’ services and forgeries of signatures of CA’s by Non-CAs, ICAI has introduced a unique concept called UDIN (Unique Document Identification Number) which protects the signatures of CAs by facilitating the members to generate UDIN for every signature put in by them on Reports/Certificates and documents from UDIN Portal and also to restrain from any disrepute to the Profession and any loss to national exchequer.

Birth of UDIN

2011

• ICAI introduced UDIN on a voluntary basis which comprised 32 characters and approx. 7500 UDINs were generated.

• However, it could not proceed further due to various reasons.

2015

• A request was received from the Indian Banks’ Association for Unique Number on documents signed by CAs because of fraud done by non-CAs.

2016

• The Professional Development ( PD ) Committee decided to re-work on the concept of UDIN.

2017

• PD Committee explored various options like UDIN, Barcode System, e-paper, etc. for verifying the authenticity of the documents.

2018

• PD Committee decided to implement UDIN with revised and enhanced features.

• The Council of ICAI at its 374th Meeting held from 21st to 24th March 2018 decided to implement UDIN on the recommendatory basis with effect from 1st July 2018.

• In the 379th Meeting of Council held from 17th to 18th Dec. 2018, it was decided to make UDIN mandatory for every full time practicing Chartered Accountant in the following phases:

• For all Certifications w.e.f. 1st Feb. 2019.

• For all GST & Tax Audit Reports w.e.f. 1st April 2019.

• For all other Audit, Assurance and Attestation functions w.e.f.1st July 2019.

1st July 2019 – UDIN became mandatory for all the documents/certificates/reports/ statements being issued by Practicing Chartered Accountants.

What is Unique about UDIN

• Non-disclosure of Client’s Name while generating UDIN.
• No documents have to be uploaded while generating UDIN.
• Security Checks enabled in the Portal ensure delivery of OTPs & UDINs on registered mobile and email only.
• Only full-time Practicing Member/ Partner/ Proprietor who is signing the document can only generate UDIN.
• UDIN is required for all attest functions signed digitally or otherwise.

Benefits of UDIN

• UDIN enables the Chartered Accountants to secure the documents certified by them.
• It helps in tracing fake or forged documents prepared by any person in the name of any Chartered Accountant/CA Firm.
• Online Mechanism makes it easier to e-verify the authenticity of the Signatures of Chartered Accountant and authenticity of the documents on a real-time basis.
• Enhance the credibility and trust amongst all concerned.

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