The Indian Institute of Chartered Accountants was founded on 01 July 1949. Here is a timeline of this organisation and a few things about the occasion known as CA Day.
The Institute of Chartered Accountants in India was established on 01 July 1949. The background of this organisation and the day designated as CA Day is the topic we will discuss today.
An Act of Parliament created the Institute of Chartered Accountants of India on 01 July 1949 (ICAI). The ICAI, one of the nation’s oldest professional institutions, was established a year before the country’s formal Constitution. With a current membership of over 2.5 lakhs, it is the world’s second-largest corporate accounting and finance organisation.
The National Financial Reporting Authority (NFRA), businesses, and accounting organisations all follow the guidelines of the ICAI, the only licensing and regulatory authority for the financial review and accounting profession in India. Being listed among the members of the ICAI as a legitimate chartered accountant is a very honourable distinction.
Every year it is celebrated on 01 July as Chartered Accountants Day or ICAI Foundation Day.
A Few Amazing Facts About ICAI
- It is one of the oldest bodies in India for Professional courses and was made by an act of Parliament in 1949
- It is second to the American Institute of Certified Public Accountants (CPA) in the largest accounting body in the world
- The best feature is that there is no reservation policy, and candidates appearing for exams are all equal. Even office bearers are chosen without any reservation policy
- The official Emblem of ICAI is a Garuda and has a quote from the Upanishads, which was given to ICAI by Sri Aurobindo
- The first certificate for becoming a full-fledged Ca was given to CA Gopaldas Padamsey Kapadia, who also became the first president of ICAI
- Shri Sorab S. Engineer was the known guru of the first president of ICAI, Shri G.P. Kapadia.
- The First Council of the ICAI was created and was notified to the general public by the Government through a notice published in the Gazette of India Extraordinary. It was published on 01 July 1949, and there were 15 elected members and five members who the government nominated
- The First meeting of the Independent ICAI was held on 15 August 1949 in New Delhi
- The longest-serving President of ICAI was Shri G.P. Kapadia, who worked from 1949-1952
- For the advantage of CA students, ICAI has recently started a programme for virtual coaching classes
The ICAI has many MoUs and MRAs with international accounting bodies that will enable its members to work abroad
- It is actively participating in the Integration of IFRS in India.
The History of ICAI
The origins of the CA profession date back to the period before independence. The British government passed the Companies Act in India in 1913, and every business registered under the Act was required to keep a stipulated list of books. Additionally, the Act allowed for the election of an auditor with authority to check these books. The Government Diploma in Accountancy programme was introduced in Bombay five years later (present-day Mumbai).
This education followed a similar format to the CA course offered today, including a three-year training term. Those who successfully finished the course were eligible to work as auditors across India. The then-Government of India decided in 1930 to keep a registry of accountants and grant the title of Registered Accountant to individuals whose names added to this list. Even still, the accountancy profession was unregulated until a 1948 recommendation from an expert group urged forming an independent body for better regulation.
But at that time, many Indians had already earned their Chartered Accountant designation and joined the Institute of Chartered Accountants in England and Wales (ICAEW). Despite the debate surrounding the phrase, it was kept because it was widely used all over. As a result, the term “Chartered Accountant” replaced the previously favoured term “Registered Accountant” when the Chartered Accountants Act 1949 was approved and the ICAI was established.
Since then, India has celebrated 01 July as ICAI Foundation Day or CA Day. Just to be clear, as India is a republic, the term “Chartered” used to describe Indian accountants has nothing to do with the royal decree of the British.
The Meaning of the ICAI Motto
A highly strong code of ethics is upheld by the ICAI. “Ya esha supteshu jagriti”, a verse from the Upanishad, serves as the organisation’s official motto. ‘The one who is awake in those that sleep’ is how it is translated. A CA has an obligation to obey the ICAI’s rules and to constantly be loyal and cautious. Even when a customer is careless with their taxes, the CA has a responsibility to assist them in improving their tax compliance.
Small and large businesses alike can benefit from the assistance of an expert, and a CA is always ready to step in. They are genetically predisposed to it, and CA Day is really a pretence to honour and recognise the value of the profession.
Demanding More Power
The ICAI has consistently pressed the government for additional legal authority to penalise those proven guilty. In a few earlier scams, the auditors were discovered to have engaged in gross negligence, but the ICAI was unable to penalise them harshly because it lacked the necessary authority.
Additionally, the ICAI has submitted a request to the Government of India to modify the Chartered Accountants Act, 1949, allowing it to fine audit firms ₹ 1 Crore if they are found guilty of conspiring with businesses to commit fraud.
Chartered Accountant’s Logo
Each of its members has a distinct logo that ICAI preserves in addition to its emblem and motto song. As part of a brand marketing initiative, the ICAI launched this distinctive new CA logo in 2007 for the use of its members. With a few limitations, the logo may be freely used by all ICAI members.
Conclusion
ICAI is one of India’s most impactful and important institutions. There are fascinating facts about ICAI, which are already discussed above. It has many powers and makes huge contributions to the finance department of India. On 01 July, both Chartered Accountant’s Day and Doctor’s Day are celebrated, and these two professions hold pretty a significant position in India. If you need any assistance with any scheme or plan, Vakilsearch can help you. Get in touch with us today.
Also, Read:
- What Is The Importance Of Accounting?
- Chartered Accountant Course Fees
- Procedure of Cost Audit in India
