July 1 will be the CA day just like every year. The Institute of Chartered Accountants of India (ICAI) will celebrate the 72nd Anniversary of its foundation on this day. Interestingly, the Virtual National CA summit 2021 shall be organised from June 29 to July 1, 2021. And Surprisingly, in a vast and overpopulated country like India, to date, there have been only 2.5 lakh Chartered Accountants of ICAI which has a towering presence in India. The Reason being simple — this organisation has set up lofty benchmarks for clearing the exam and consequently, there are hundreds of Chartered accountants who hold assets worth millions of dollars. So, behind this lucrative income, there are rigorous standards of education and there are few people in hundreds of aspirants who are able to clear this exam and become Chartered Accountant.
The USP of this profession is the fact that it is the only profession in India that is licensed for the purpose of financial audit of any organisation and across the globe, it is the second-largest body imparting education related to accounting and finance.
It is undoubtedly a matter of pride to be a member of such big and esteemed body and so to honour these members and their existence, every year we celebrate ca day date on 1st July.
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Get to Know 5 Significant Points About ICAI :
- It is known as the oldest professional bodies in India which came into being by an act of parliament in 1949.
- It is also the second biggest accounting organization in the world after the American Institute of certified public accountants (CPA).
- Also, there is no kind of reservation in the ICAI and the reservation criteria are not followed
- The official emblem of the ICAI is the ‘Garuda’ and has Upanishad quotes given by the Sri Aurobindo.
- The first person to get the ICAI certificate was CA gopaldas padamsey kapadia and he is also the first president of ICAI
Origin and History Of ICAI
The origin of the Chartered Accountants (CA) as a profession can be found in the period before the independence of the country. The Companies Act was constituted by the British government in 193 which included some rules and laws to be followed by the companies. The Act included a list of books which was mandatory to be maintained by the companies registered under the act.
The audit of such was also made compulsory for such companies by a registered auditor. In 1918, a Diploma in Accountancy course was started in Mumbai by the government. The course was quite simial to the present course of CA, along with a training period of three years. All the aspirants who cleared the course were eligible to be appointed as an Auditor throughout the country.
In 1930, the government decided to maintain a register of accountants. All the accountants listed under the register were called Registered Accountants. 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. Until then, all the accountants in India were registered under the Institute of Chartered Accountants in England and Wales (ICAEW) and were considered Chartered Accountants under the institute.
Controversies have risen against the use of the word ‘Chartered’ but it was already under-use and hence retained. Hence, when the Institute of Chartered Accountants on India (ICAI) was incorporated under the Chartered Accountants Act, 1949, the use of the term ‘Chartered’ was legalised instead of ‘Registered’. Hence, 1st July is considered as the ICAI Foundation day or CA day in India since 1949.
The word Chartered, as used for Chartered Accountants in India, has no relation with the royal charter of the British since the independence of the country.
Appointment of Auditor Became mandatory
The provenance of
the CA profession lays back in the days before Independence. In 1913,
the Companies Act was passed by the British government in India which
mandated the regulation and maintenance of certain books of accounts
for every company registered under the Act. In addition, as per the
act, it also became mandatory to appoint an Auditor to audit these
1918 – Government
Diploma in Accountancy
After five years, a
course was launched in Mumbai with the name “ Government Diploma in
Accountancy”. This course had the same pattern & standard as of
present CA course along with a three-year training period. Those who
successfully qualified this diploma and completed the training of
three years were allowed to practice a profession of an Auditor
1930 – Registered
In 1930, the new
Government of India (GOI) started maintaining a register of
accountants which carried the names of accountants and such
individuals were referred to as Registered Accountant.
1949 – Chartered
Accountants Act and ICAI
No step was
significant enough to efficiently regulate the profession of
accountancy. Then an expert committee which was formed in 1948
suggested the formation of an autonomous body to regulate this
profession and so the Chartered Accounts Act of 1949 was passed and
the ICAI was formed.
Accountant” superannuated the title “Registered Accountant”.
By this time many Indians were members of the Institute of Chartered Accountants in England and Wales (ICAEW) and were titled as ”Chartered Accountants “. In this way, the title “Chartered Accountant” superannuated the title of “Registered Accountant”.
CA Day 2021
Institute of Chartered Accountants India (ICAI) on the 72nd Chartered Accountants Day brings virtual National CA Summit 2020 from 29 June to 1 July 2020. After all this, 1st July has been recognised as ICAI Foundation Day or CA Day 2021 in India to pay tribute to the one the oldest and most dignified professions of India. CA day 2021 is a yearly event to mark the profession of chartered accountants who are the backbone of the country’s economy and its management. CA Portal is active in its coverage of complete news, updates and articles based on chartered accountants day 2020.
Celebration of CA Day
The role of a Chartered Accountant is very important in any business organisation, regardless of the size and nature of the firm. An array of his/her responsibilities expands from preparing financial statements and developing financial plans to auditing, tax filings, bookkeeping and so on. So, to Laurel the profession and to acknowledge its importance in an organisation as well as in the national economy, we celebrate CA day 2021 every year on 1st July.
Every organisation has CAs and has its own way to celebrate the day. Some organisations conduct some activities for the CA’s of their organization, some incentivise these great initiatives and some takes care of their clients by launching discount offers while conducting awareness activities, parties, donation activities etc in their office premises.