Wednesday, 30 June 2021

Chartered Accountants’ Day or CA Day 2021: Here’s why it is celebrated

 CA Day 2021: Charted Accountant Day is observed on 1 July to celebrate the foundation of the Institute of Chartered Accountants of India (ICAI). Read on to learn complete history.


Chartered Accountants’ Day 2021: This year 73rd Chartered Accountants’ Day is celebrated. The Institute of Chartered Accountants of India (ICAI) was established on 1 July 1949 by an act of parliament. ICAI is the second largest accounting body in the world, after the American Institute of Certified Public Accountants (AICPA). In this article, we are going to learn about history.

CA Day: History

Back in 1913, before independence, the British Government passed the Companies Act in India that prescribed a list of books that every firm registered under the Act had to maintain. An auditor was also appointed by the same act which had the power to audit these books.

work as an auditor, one needs to acquire a certificate after fulfilling some conditions. The certificate holder was allowed to exercise only within the province and in the local language mentioned in the certificate

Chartered Accountants’ Day or CA Day 2021: Here’s why it is celebrated

CA Day 2021: Charted Accountant Day is observed on 1 July to celebrate the foundation of the Institute of Chartered Accountants of India (ICAI). Read on to learn complete history.
CREATED ON: JUL 1, 2021 01:24 IST
MODIFIED ON: JUL 1, 2021 01:24 IST
Charted Accountant Day
Charted Accountant Day
 
Chartered Accountants’ Day 2021: This year 73rd Chartered Accountants’ Day is celebrated. The Institute of Chartered Accountants of India (ICAI) was established on 1 July 1949 by an act of parliament. ICAI is the second largest accounting body in the world, after the American Institute of Certified Public Accountants (AICPA). In this article, we are going to learn about history.

CA Day: History

Back in 1913, before independence, the British Government passed the Companies Act in India that prescribed a list of books that every firm registered under the Act had to maintain. An auditor was also appointed by the same act which had the power to audit these books.

To work as an auditor, one needs to acquire a certificate after fulfilling some conditions. The certificate holder was allowed to exercise only within the province and in the local language mentioned in the certificate

years later, in 1918, a course called Government Diploma in Accountancy was launched in Bombay. After completing this course with a three-year training period, the person was eligible to work as an Auditor throughout India. After some years, the course was discontinued.

In the year 1930, the government decided to maintain a register called the Register of Accountants. The person with the name in the register was called a Registered Accountant. After a few years, a board named the Indian Accountancy Board was established. The board advised the Governor-General of India on accountancy and the qualifications for auditors. But many felt that the accountancy profession was largely unregulated, and created confusion when it comes to the qualifications of auditors.

Due to this reason, after independence, in the year 1948, an expert committee was set up to analyze the issues. The committee recommended that a separate autonomous association of accountants should be set up to regulate the profession.

The Indian Government accepted the recommendations of the committee and passed the Chartered Accountants Act in 1949 even before India became a republic. Under section 3 of the said Act, ICAI was founded as a body corporate with perpetual succession & a common seal.

The word ‘Chartered’ when used for Indian accountants, has no relation to the royal charter of the British, unlike in other Commonwealth countries.

Register of Accountants. The person with the name in the register was called a Registered Accountant. After a few years, a board named the Indian Accountancy Board was established. The board advised the Governor-General of India on accountancy and the qualifications for auditors. But many felt that the accountancy profession was largely unregulated, and created confusion when it comes to the qualifications of auditors.

Due to this reason, after independence, in the year 1948, an expert committee was set up to analyze the issues. The committee recommended that a separate autonomous association of accountants should be set up to regulate the profession.

The Indian Government accepted the recommendations of the committee and passed the Chartered Accountants Act in 1949 even before India became a republic. Under section 3 of the said Act, ICAI was founded as a body corporate with perpetual succession & a common seal.

The word ‘Chartered’ when used for Indian accountants, has no relation to the royal charter of the British, unlike in other Commonwealth countries.

SOURCE: https://m.jagranjosh.com/general-knowledge/charted-accountant-day-1561964205-1?utm_source=izooto&utm_medium=push_notifications&utm_campaign=GK

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