{Recently Taxguru has published my 70th article at its portal. ICAI too is celebrating the 70th year of its establishment. I hereby dedicate my 70 articles to the legendary figures of profession of Chartered Accountancy. Before moving on, I hereby dedicate my 71st article to the ICAI history}
The Origin Of Accountants
Chartered Accountants were the first accountants to form a professional accounting body, initially established in Scotland in 1854. The Edinburgh Society of Accountants (1854), the Glasgow Institute of Accountants and Actuaries (1854) and the Aberdeen Society of Accountants (1867) were each granted a royal charter almost from their inception. The title is an internationally recognised professional designation; the certified public accountant designation is generally equivalent to it. In 1893, the first building of the Institute of Chartered Accountants was raised at Moorgate Place ,City of London.
{Institute for Chartered Accountants Building. 1888-93. Moorgate Place, City of London. Architects: John Belcher assisted by Bereford Pite 1888-93, J.J. Joass, 1930, Sir William Whitfield, 1964-70. Opened: 1893, with extensions in 1930-31, and 1959.}
The Wings Spread To The Common Wealth Countries
The Commonwealth of Nations, often known as simply the Commonwealth, is an intergovernmental organisation of 53 member states that are mostly former territories of the Empire. Out of 53 countries, 28 countries have established The Institute of Chartered Accountants in their respective countries. Two institutes of New Zealand and Australia merged their institution in 2013. At present the following Institutions of Chartered Accountants are in the world.
- Bahamas Institute of Chartered Accountants
- Canadian Institute of Chartered Accountants
- Chartered Accountants Australia and New Zealand as a result of merger of New Zealand Institute of Chartered Accountants (NZICA) and the Institute of Chartered Accountants Australia (ICAA) in 2013
- Chartered Accountants Ireland
- Institute of Chartered Accountants of Bangladesh
- Institute of Chartered Accountants of Barbados
- Institute of Chartered Accountants of Belize
- Institute of Chartered Accountants of Bermuda
- Institute of Chartered Accountants of the Eastern Caribbean
- Institute of Chartered Accountants in England & Wales
- Institute of Chartered Accountants of Ghana
- Institute of Chartered Accountants of Guyana
- Institute of Chartered Accountants of India
- Institute of Chartered Accountants of Indonesia
- Institute of Chartered Accountants of Jamaica
- Institute of Chartered Accountants of Namibia
- Institute of Chartered Accountants of Nepal
- Institute of Chartered Accountants of Nigeria
- Institute of Chartered Accountants of Pakistan
- Institute of Chartered Accountants of Scotland
- Institute of Chartered Accountants of Sierra Leone
- Institute of Singapore Chartered Accountants
- Institute of Chartered Accountants of Sri Lanka
- Institute of Chartered Accountants of Trinidad and Tobago
- Institute of Chartered Accountants of Zimbabwe
- South African Institute of Chartered Accountants
- Zambia Institute of Chartered Accountants
The Origin Of Auditors In India
In the year 1905, Some Historical Facts of Importance Paving the Way for Indian Youth enter CA Profession in 1905: Shri K. S. Aiyar, arguably the father of Indian accountancy and the pioneer of Commerce education in India, brought the three year apprenticeship of Society of Incorporated Accountants and Auditors of London to India in 1905 paving the way for Indian youth entering the profession in greater number. Among the aspiring Incorporated Accountants, Shri Sorab S. Engineer was the first to serve his apprenticeship in India under Shri K. S. Aiyar. First Indian to Become Member of ICAEW: Shri A. E. Cama was the first Indian to become a member of the Institute of Chartered Accountants of England and Wales as early as in 1908. Accountancy Got Statutory Recognition In India In 1913:
{Shri K S Aiyar First Indian to Become Member of ICAEW}
In the year 1913, The Companies Act, passed in prescribed various books which had to be maintained by a Company registered under that Act. The Act of 1913 replaced the Indian Companies Act of 1882 for the first time by the Indian Companies Act of 1913 ,a statutory provision was made for audit of accounts of companies. It also required the appointment of a formal Auditor with prescribed qualifications to audit such records. In order to act as an auditor a person had to acquire a restricted certificate from the local government upon such conditions as may be prescribed. The holder of a restricted certificate was allowed to practice only within the province of issue and in the language specified in the restricted certificate.
{ Certificate of Incorporation under the companies Act 1913}
In the year 1918 , a course called Government Diploma in Accountancy was launched in. On passing this diploma and completion of three years of articled training under an approved accountant, a person was held eligible for grant of an unrestricted certificate. This certificate entitled the holder to practice as an auditor throughout India. Later on the issue of restricted certificates was discontinued in the year 1920.
In the year 1930 after the Society of Auditors founded in Madras, it was decided that the Government of India should maintain a register called the Register of Accountants. Any person whose name was entered in such register was called a Registered Accountant. Later on a board called the Indian Accountancy Board was established to advise the Governor General of India on accountancy and the qualifications for auditors. However it was felt that the accountancy profession was largely unregulated, and this caused lots of confusion as regards the qualifications of auditors.
In the year 1932, an Accountancy board was developed called as Indian Accountancy Board to advise the Governor General in Council of India on the points of Accountancy and the required conduct along with qualification standards of the auditors. Earlier its members were appointed by the Governor General in Council but later on in 1939, elective element was brought into the constitution of the Board. The Secretary of the Department of Commerce of the Government of India was the Chairman of the Board. The Auditor General in India was the only other official member of the Board. There were 16 non-official members in the Board, who were nominated on advice of the Local Government. The Indian Accountancy Board held its first examination in the year 1933 and GDAs has been exempted from taking the test of auditors, in the same year. Before GDA has been completely abolished in 1943, the first final examination of the auditors has been taken by the Accountancy Board.
In the year 1948, just after independence in 1947, an expert committee was created to look into the matter. This expert committee recommended that a separate autonomous association of accountants should be formed to regulate the profession. Introduction of CA Bill, 1948: Chartered Accountants Bill, 1948 was introduced in Constituent Assembly of India (Legislative) on 4th September, 1948. The Government of India accepted the recommendation and passed the Chartered Accountants Act in 1949 even before India became a republic. Under section 3 of the said Act, ICAI is established as a body corporate with perpetual succession and a common seal.
In the year 1949, The Institute of Chartered Accountants of India was established under the Chartered Accountants Act, 1949 passed by the Parliament of India with the objective of regulating accountancy profession in India. The Chartered Accountants Act, 1949, described as an Act to make provision for the regulation of the profession of Accountants was passed and received the assent of the Governor General in Council on 1st May, 1949 and published by the authority in the Gazette of India Extraordinary on 3rd May, 1949. First Member of the ICAI: Shri G. P. Kapadia was the first member of The Institute of Chartered Accountants of India. The Institute of Chartered Accountants of India proudly mention its origin set up by an act of Parliament. Infect, it is a wrong title to claim. The Parliament of India came into existence from 26th January 1950. The Chartered Accountant Act 1949 was passed by the Constituent Assembly of India elected on 6 December 1946 following India’s independence from Great Britain in 1947, The said assembly was Preceded by Imperial Legislative Council and Succeeded by Parliament of India on 24 January 1950.
The Designation Of Chartered Accountant
Unlike most other commonwealth countries, the word chartered does not refer to a royal charter, since India is a republic. At the time of passing the Chartered Accountants Act, various titles used for similar professionals in other countries were considered, such as Certified Public Accountant. However, many accountants had already acquired membership of the Institute of Chartered Accountants in England and Wales and other Chartered Societies of Great Britain and were practising as Chartered Accountants. This had created some sort of brand value. This designation inherited a public impression that Chartered Accountants had better qualifications than Registered Accountants. Hence the accountants were very stern in their stand that, the Indian accountancy professionals should be designated only as Chartered Accountants. After much debate in the Indian Constituent Assembly, the controversial term, chartered was accepted. When the Chartered Accountants Act, 1949 came into force on 1 July 1949, the term Chartered Accountant superseded the title of Registered Accountant. This day is celebrated as Chartered Accountants day every year.
The First President Of ICAI
Shri G P Kapadia was the first member of the Institute of Chartered Accountants of India and he was trained and did his apprenticeship under Certified Accountant Mr. Sorab Engineer who had this qualification under the Government Diploma in Accountancy, a course sanctioned by Indian Government back then. Shri Sorab S. Engineer was the first to serve his apprenticeship in India under Shri K. S. Aiyar. He was the First Indian to Become Member of ICAEW. The first membership certificate of ICAI was issued to Shri G .P. Kapadia admitting him as fellow member of the Institute from 16th August 1949 issued on 9th June, 1950, thus. He was one of the founding members and the first President of ICAI. He was the longest serving President in the history of ICAI who served for a term of 1949-1952. ICAI Membership as on 1st April, 1950: After the first Council of the Institute started functioning, were 1,689 members-569 Fellows and 1,120 Associates.
{As a mark to respect to a legendry soul CA G P Kapadia of the CA profession, the first rank holder in CA exam is awarded GP Kapadia gold medal in his memory by ICAI }
The ICAI Logo & Emblem
The ICAI Logo was Conceptualised by great Nationalist Philosopher Sri Aurobindo Ghosh: “When the Institute was formed in the year 1949 in the month of July, C.S. Shatri, a noted Chartered Accountant of Madras went to Sri Aurobindo and requested him through a letter to give an emblem to the newly formed Institute of which he was an elected member from the South. Sri Aurobindo gave him the emblem with a Garuda in the center and a quotation from the Upanishad (Kathopanishad):YA ESA SUPTESU JAGARTI, that person who is awake in those that sleep. The emblem was placed at the first meeting of the Council of the Institute in New Delhi on 15th August, 1949 and was accepted amongst many other emblems placed by other members of the Council. So, that became the emblem of the Chartered Accountants of India.
{The motto of the ICAI is Ya Aeshu Suptaeshu Jagruti [Sanskrit]. The motto literally means “a person who is awake in those that sleep”. It is a quotation from the Upanishads (Kathopanishad)}
(About the Author– Author was Member of ICAI- Capacity Building Committee 2010-11 and ICAI- Committee For Direct Taxes 2011-12 and can be reached at email amresh_vashisht@yahoo.com or on phone Phone: 0 1 2 1-2 6 6 1 9 4 6. Cell: 9 8 3 7 5 1 5 4 3 2 having office at 1 1 5, Chappel Street, Meerut Cantt, UP, INDIA)
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