The government hinted on Tuesday at introducing a more stringent auditing system in line with the Naresh Chandra committee recommendations, within the next one year. 

"We are in the process of examining the recommendations of the Naresh Chandra Committee and there would be certain changes and developments within the next one year," company affairs secretary, Vinod Dhall, said while releasing the "peer review manual" of the Institute of Charterd Accountants of India in New Delhi.

Finance Minister Jaswant Singh appointed the Naresh Chandra Committee to look into the issues of auditing and corporate governance last year.

The government is planning to amend the Companies Act 1997 and introduce new legislations for this purpose.

Lauding the role of Institute of Chartered Accountants, Dhall said there would be a lot of changes and developments taking place in the institute.

The government plans to set up a Accounting Standard Board, which would oversee the accounting norms in the country.

ICAI president R Bupathy said the peer review board of the institute would "harmonise" its norms with that of the Accounting Standard Board.

The system of peer review by the ICAI should not give the impression of an internal review and of being a mere formality but should improve the quality of auditing, Dhall said.

Chartered accountants were facing challenges emerging from the World Trade Organisation and General Agreement on Tariff and Trade and also due to certain developments involving the corporate sector and some auditing firms abroad, he said.

The ICAI has recognised the crisis and was taking pre-emptive measures in the country, he said, adding, "It is our responsibility to convert these challenges into some kind of opportunity," Dhall said.