On the 1st July, 2022, The Institute of Chartered Accountants of India celebrates the 74th anniversary of the establishment of the ICAI.
Chartered Accountancy Profession is considered as one of the most prestigious professions in the world not merely for the tough examination patterns but for the scope and responsibilities a Chartered Accountant has to play in attesting the financials and certifying other statutory requirements for a true and fair view and in some cases to its correctness.
Someone has rightly said "If Health suffers we need doctors, but when Economy Suffers We Need Chartered Accountants."
The History dates back to 1913
The profession found its demand even before India attained Independence.
Back in 1913, the British Government passed the Companies Act in India that prescribed a list of books that every Company registered under the Act had to maintain.
An auditor was also appointed by the same Act which had the power to audit these books.
The auditor had to possess a certificate fulfilling certain criteria to audit the books of accounts and he was allowed to exercise only within the province and in the local language mentioned in the certificate.
1918 - A new Course is Launched
In 1918, a course called Government Diploma in Accountancy was launched in Bombay. After completing this course with a three-year training period,(similar to the current articleship training) the person was eligible to work as an Auditor throughout India.
Many GDA holders were conferred as Chartered Accountants once The ICAI was formed.
Interference of the Government in 1930
In the year 1930, the Government wanted to list all the accountants calling them Registered Accountants.
Later in subsequent years, a board named the Indian Accountancy Board was established.
The Accountancy Body goes Unregulated
Practices were developing but the profession of accountant remained unregulated until 1948 when a suggestion to create an autonomous body was made by an Experts Committee for the regulation of the accountants and their practices.
1949 -The Birth of The Institute of Chartered Accountants Of India
After independence, in the year 1948, an expert committee was set up to analyze the issues.
The committee proposed that a separate autonomous association of accountants should be set up to regulate the profession.
The Indian Government accepted the proposal of the committee and passed the Chartered Accountants Act in 1949, Under section 3 of the said Act, ICAI was founded as a body corporate with perpetual succession & a common seal.
What Makes ICAI Stand out?
- ICAI is the second largest accounting body in the world.
- ICAI is one of the oldest professional bodies in India to be recognized by the Parliament.
- The course is an unbiased course, since there is no reservation; the passing is based merely on hard work and talent of the Candidate.
- CA Gopal das Padamsee Kapadia was the first person to get the membership of ICAI and he was the First President of the Institute.
- CA R Sivabhogam was the first woman Chartered Accountant.
- The motto of the ICAI is "Ya Aeshu Suptaeshu Jagruti" taken from Upanishad, which literally means "a person who is awake in those that sleep".
Taking pride in being a part of the Institute, Wishing all the Chartered Accountants and Budding Chartered Accountants, "A Very Happy CA Day."
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