History of Indian Chartered Accountants || When ICAI Was Established | Chartered Accountant Act

Summary

This video explores the history and evolution of the Institute of Chartered Accountants of India (ICAI). It traces the origins of accounting regulations in India, starting from the British era, and highlights key milestones like the introduction of the Accounting Act in 1948, which led to the formation of ICAI. The video also delves into the first Chartered Accountant of India and the process of designing the ICAI emblem. It further explains how the accounting profession in India became regulated before the Constitution of India was enacted, providing a detailed yet engaging overview of ICAI's foundational journey.

Takeaways

• 😀 India gained independence in 1947, and the Constitution of India was enacted in 1950. However, the Institute of Chartered Accountants of India (ICAI) was established even before the Constitution, through an Act.
• 😀 The history of the Indian Chartered Accountants profession dates back to the British rule in 1657, when the first company was formed in India and accounting practices were set up.
• 😀 In 1930, the British Parliament passed a new company law for India, which specified how companies should maintain books of accounts, and auditors were appointed for this task.
• 😀 A diploma course in accountancy was launched in 1981, which allowed people to work as auditors and accountants across India, although this course was later discontinued.
• 😀 In 1930, a register of accountants was created, and those listed in it were called registered accountants, who were the only ones authorized to conduct accounting and auditing.
• 😀 The powers of certification previously held by local authorities were transferred to the council of governors, and the Indian Accountancy Board was established in 1932 to oversee the standards of accounting qualifications.
• 😀 The first-ever Chartered Accountancy exam in India was conducted in 1933, marking a significant step in the development of the profession.
• 😀 After India gained independence in 1947, an expert committee was formed in 1948 to regulate the accounting profession and maintain its quality. The committee's recommendations were accepted by the government.
• 😀 The Chartered Accountants Act of 1948 was passed, and the Institute of Chartered Accountants of India (ICAI) was officially established under this Act in 1949.
• 😀 The emblem of the ICAI was designed by philosopher Sri Aurobindo, and the motto 'Saptamesh V Jagriti' (awakening among the sleeping) was adopted. This emblem was approved on August 15, 1949.
• 😀 G. P. Kapadia became the first member of ICAI and was appointed as the first President after the approval of the ICAI emblem in 1949.

Q & A

When did India gain independence and when was its constitution implemented?

India gained independence in 1947, and its constitution was implemented in 1950.

How is the Institute of Chartered Accountants of India (ICAI) related to India's constitution?

The ICAI was established before India's constitution was implemented, as it was created by an act passed before 1950.

Who was the first Chartered Accountant in India?

The first Chartered Accountant in India was G.P. Kapadia, who was also the first person to receive ICAI's membership.

What role did the British play in shaping India's accounting sector?

During British rule, companies in India were required to maintain uniform accounts, and auditors were appointed based on regulations passed by the British Parliament, including the Company Act of 1930.

What happened in 1930 to improve accounting standards in India?

In 1930, the British Parliament passed a new Company Act for India, which specified how companies should maintain accounts and appointed auditors under strict conditions.

What was the significance of the Diploma in Accountancy launched in 1981?

The Diploma in Accountancy, launched in 1981, was a course designed to train individuals for accounting and auditing posts across India. It included mandatory training but was later discontinued.

How did the establishment of the Indian Accountancy Board in 1932 influence accounting professionals?

The Indian Accountancy Board, established in 1932, set standards for auditor qualifications and conducted the first exam in 1933, marking a pivotal moment for the profession in India.

What event marked the beginning of the professional revolution in India's accounting sector?

The establishment of the Institute of Chartered Accountants of India (ICAI) in 1949 marked the beginning of a professional revolution in India's accounting sector, providing regulation and quality maintenance.

Why was the Accounting Act of 1948 important?

The Accounting Act of 1948 was important because it established ICAI as an autonomous body responsible for regulating the accounting profession in India and maintaining professional standards.

How was the logo of ICAI designed and who was involved in its creation?

The logo of ICAI was designed by Shri Aurobindo, a philosopher, after a request from C.S. Shastri, the then President of the Chennai chapter, who wanted an emblem for ICAI.