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There is no vandalism. before any claim( here "Chartered" means respect in India is totally incorrect. we need citation which should be reliable and not from ICAI site.
Tag: references removed
Undid revision 377972508 by User:Costfavour. The user does not know wiki mark up language and is distorting the article layout. The use is more of a vandal.
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{{Multiple issues|essay-like=August 2010|fansite=August 2010|peacock=August 2010|expand =April 2010}}
{{multiple issues|essay-like=August 2010|fansite=August 2010|peacock=August 2010}}


{{Infobox
{{Infobox
|title = The Institute of Chartered Accountants of India
|title = [[Institute of Chartered Accountants of India|The Institute of Chartered Accountants of India]]
|image = [[Image:ICAI Logo.jpg|150px]]
|image = [[Image:ICAI Logo.jpg|150px]]
|caption=The [[emblem]] of the Institute of Chartered Accountants of India as given by [[Sri Aurobindo]]
|caption=The [[emblem]] of the Institute of Chartered Accountants of India as given by [[Sri Aurobindo]]
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}}
}}


'''The Institute of Chartered Accountants of India''' ('''ICAI''') is a statutory body established under the Chartered Accountants Act, 1949<ref>[http://www.mca.gov.in/Ministry/actsbills/pdf/The_Chartered_Accountants_Act_2006.pdf "Chartered Accountants Act 1949 as amended in 2006"] (PDF)
'''The Institute of Chartered Accountants of India''' ('''ICAI''') is a statutory body established under the Chartered Accountants Act, 1949<ref>[http://www.mca.gov.in/Ministry/actsbills/pdf/The_Chartered_Accountants_Act_2006.pdf "Chartered Accountants Act 1949 as amended in 2006"] {PDF)
</ref> passed by the [[Parliament of India]] to regulate the profession of Chartered Accountancy in [[India]]. ICAI considers itself to be the second largest accounting body in the whole world<ref>[http://www.icai.org/post.html?post_id=165&c_id=195 About ICAI from ICAI website]</ref> next only to [[Chartered Institute of Management Accountants|CIMA]] in sheer terms of membership. Unlike most other [[Commonwealth of Nations|Commonwealth]] countries, the word Chartered in Chartered Accountant does not refer to any [[Royal Charter]] since India is a [[republic]]. Chartered here represents the respected position of the members of ICAI{{Citation needed|date=August 2010}}<references />. After the Chartered Accountants Act, 1949 was brought into force on 1 July 1949, the term [[Chartered Accountant]] came to be used in place of Registered Accountants and Government Diploma Accountants.
</ref> passed by the [[Parliament of India]] to regulate the profession of Chartered Accountancy in [[India]]. ICAI considers itself to be the second largest accounting body in the whole world<ref>[http://www.icai.org/post.html?post_id=165&c_id=195 About ICAI from ICAI website]</ref> next only to [[Chartered Institute of Management Accountants | CIMA]] in sheer terms of membership. Unlike most other [[Commonwealth of Nations|Commonwealth]] countries, the word Chartered in Chartered Accountant does not refer to any [[Royal Charter]] since India is a [[republic]]. Chartered here represents the respected position of the members of ICAI<ref> [[Professionals#Characteristics of a profession | Respected Character of Professional]]</ref>. After the Chartered Accountants Act, 1949 was brought into force on 1 July 1949, the term [[Chartered Accountant]] came to be used in place of Registered Accountants and Government Diploma Accountants.


==Motto==
==Motto==
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In the year 1930 it was decided that the Government shall maintain a Register called the Register of Accountants. Any person whose name was entered in such register was called Registered Accountant. Later on a board called the Indian Accountancy Board was established to advice the [[Governor General]] on Accountancy and the qualifications for Auditors. However it was felt that the Accountancy profession was highly unregulated and caused lots of confusion as regards the qualifications of auditors.
In the year 1930 it was decided that the Government shall maintain a Register called the Register of Accountants. Any person whose name was entered in such register was called Registered Accountant. Later on a board called the Indian Accountancy Board was established to advice the [[Governor General]] on Accountancy and the qualifications for Auditors. However it was felt that the Accountancy profession was highly unregulated and caused lots of confusion as regards the qualifications of auditors.
Hence in the year 1948,just after [[Indian independence|independence]] in 1947 an Expert Committee recommended that a separate [[autonomous]] [[association]] of accountants should be formed to regulate the profession. The government took it seriously and passed the Chartered Accountants Act in 1949 even before India became a Republic. Under Section 3 of the said Act, ICAI is established a body corporate with [[perpetual succession]] and a [[Company seal|Common Seal]].
Hence in the year 1948,just after [[Indian independence|independence]] in 1947 an Expert Committee recommended that a separate [[autonomous]] [[association]] of accountants should be formed to regulate the profession. The government took it seriously and passed the Chartered Accountants Act in 1949 even before India became a Republic. Under Section 3 of the said Act, ICAI is established a body corporate with [[perpetual succession]] and a [[Company_seal|Common Seal]].


The Christening of the name Chartered Accountant to the professional accountants in India has a interesting story behind it. One may be given the view that this institute is backed by a [[Royal Charter]]. But it is not so, since there cannot be a royal charter in a Republic country like India. At the time of passing the Chartered Accountants Act, various other name like [[Certified Public Accountant]] etc., used for similar professionals in other countries, were considered. But the professionals were very adamant that the professionals should be christened only as Chartered Accountants. This was because many accountants had already acquired memberships of the [[Institute of Chartered Accountants in England & Wales]] and were practising in the name of Chartered Accountants. This had increased the respect and honour associated with [[designation]], Chartered Accountant. Hence the professionals pressed for this name and won the same. Therefore failing the meaning associated with a Chartered Accountant, in India the name simply recognizes the respect and honour<ref>[[Professionals#Characteristics of a profession|Respected Character of Professional]]</ref> associated with the profession and not any Royal Charter.
The Christening of the name Chartered Accountant to the professional accountants in India has a interesting story behind it. One may be given the view that this institute is backed by a [[Royal Charter]]. But it is not so, since there cannot be a royal charter in a Republic country like India. At the time of passing the Chartered Accountants Act, various other name like [[Certified Public Accountant]] etc., used for similar professionals in other countries, were considered. But the professionals were very adamant that the professionals should be christened only as Chartered Accountants. This was because many accountants had already acquired memberships of the [[Institute of Chartered Accountants in England & Wales]] and were practising in the name of Chartered Accountants. This had increased the respect and honour associated with [[designation]], Chartered Accountant. Hence the professionals pressed for this name and won the same. Therefore failing the meaning associated with a Chartered Accountant, in India the name simply recognizes the respect and honour<ref> [[Professionals#Characteristics of a profession | Respected Character of Professional]]</ref> associated with the profession and not any Royal Charter.


==Role played by a Chartered Accountant==
==Role played by a Chartered Accountant==


Chartered Accountants enjoy varied careers in the fields of accounting, auditing, [[Corporate Finance]], Corporate Law{{Citation needed|date=August 2010}} and Taxation. Chartered Accountants enjoy a Statutory monopoly in audit of financial statements<ref>[http://mca.gov.in/Ministry/actsbills/pdf/Companies_Act_1956_Part_1.pdf Section 226(1)] of Companies Act, 1956 requires that an auditor be a Chartered Accountant.</ref>.
Chartered Accountants enjoy varied careers in the fields of accounting, auditing, [[Corporate Finance]], Corporate Law{{citation needed}} and Taxation. Chartered Accountants enjoy a Statutory monopoly in audit of financial statements<ref> [http://mca.gov.in/Ministry/actsbills/pdf/Companies_Act_1956_Part_1.pdf Section 226(1)] of Companies Act, 1956 requires that an auditor be a Chartered Accountant.</ref>.


==Training==
==Training==
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#Certificate Course on [[Forensic Accounting]] & [[Fraud]] Detection using IT & [[CAAT]]s
#Certificate Course on [[Forensic Accounting]] & [[Fraud]] Detection using IT & [[CAAT]]s
#Certificate Course on [[International Financial Reporting Standards]]
#Certificate Course on [[International Financial Reporting Standards]]
#Certificate Course on [[Forex]] and [[Treasury management|Treasury Management]]
#Certificate Course on [[Forex]] and [[Treasury management| Treasury Management]]
#Certificate Course on [[Derivatives]]
#Certificate Course on [[Derivatives]]
#Certificate Course on [[Valuation]]
#Certificate Course on [[Valuation]]
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#CPE Course on Computer Accounting and Auditing Techniques ([[CAAT]])
#CPE Course on Computer Accounting and Auditing Techniques ([[CAAT]])
#Diploma in Insurance and Risk Management (DIRM)
#Diploma in Insurance and Risk Management (DIRM)
#[[Management accounting|Management Accountancy]] Course (MAC)/ Corporate Management Course (CMC)/ Tax Management Course (TMC)
#[[Management accounting| Management Accountancy]] Course (MAC)/ Corporate Management Course (CMC)/ Tax Management Course (TMC)
#International Trade Laws & World Trade Organisation (ITL & WTO)
#International Trade Laws & World Trade Organisation (ITL & WTO)
#[[Enterprise resource planning|ERP]] Courses on [[SAP AG|SAP]] FA & MA Module, Microsoft Dynamics NAV
#[[Enterprise resource planning|ERP]] Courses on [[SAP AG|SAP]] FA & MA Module, Microsoft Dynamics NAV
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==Audit and Assurance Standards issued by ICAI {{anchor|Auditing Standards}}==
==Audit and Assurance Standards issued by ICAI {{anchor|Auditing Standards}}==


{{As of|2010}} ICAI has issued 43 Engagement and Quality Control Standards<ref>[http://www.icai.org/post.html?post_id=450&c_id=141 Engagement and Quality Control Standards issued by ICAI]</ref> (formerly known as Auditing and Assurance Standards) covering various topics relating to [[financial audit|auditing]] and other engagements. All Chartered Accountants in India are required to adhere to all these standards. If a Chartered Accountant is found not to follow the said standards he is deemed guilty of professional misconduct. ICAI has classified the standards under five headings to demonstrate compliance with [[International Standards on Auditing]] issued by the[[International Auditing and Assurance Standards Board|IAASB]] of [[International Federation of Accountants|IFAC]].
{{As of|2010}} ICAI has issued 43 Engagement and Quality Control Standards<ref>[http://www.icai.org/post.html?post_id=450&c_id=141 Engagement and Quality Control Standards issued by ICAI]</ref> (formerly known as Auditing and Assurance Standards) covering various topics relating to [[financial audit|auditing]] and other engagements. All Chartered Accountants in India are required to adhere to all these standards. If a Chartered Accountant is found not to follow the said standards he is deemed guilty of professional misconduct. ICAI has classified the standards under five headings to demonstrate compliance with [[International Standards on Auditing]] issued by the[[International Auditing and Assurance Standards Board | IAASB]] of [[International Federation of Accountants | IFAC]].


==Presidents==
==Presidents==
ICAI's first president was CA. G. P. Kapadia. He acted as the president for the nascent years of ICAI's existence from 1949 to 1952. The presidents are now elected by the Council of ICAI to serve a one year term. It has become a tradition to promote the vice president as the president for the next term. Notable past presidents include [[Rahul Roy|CA. Rahul Roy]] (1998–99), [[Kamlesh Shivji Vikamsey|CA. Kamlesh Shivji Vikamsey]] (2005–06) and [[T. N. Manoharan|CA. T. N. Manoharan]] (2006–07). <!-- See discussion on talk page; only add to this list if wider notability is demonstrated by a biographical article in Wikipedia -->
ICAI's first president was CA. G. P. Kapadia. He acted as the president for the nascent years of ICAI's existence from 1949 to 1952. The presidents are now elected by the Council of ICAI to serve a one year term. It has become a tradition to promote the vice president as the president for the next term. Notable past presidents include [[Rahul Roy | CA. Rahul Roy]] (1998-99), [[Kamlesh Shivji Vikamsey | CA. Kamlesh Shivji Vikamsey]] (2005-06) and [[T. N. Manoharan | CA. T. N. Manoharan]] (2006-07). <!-- See discussion on talk page; only add to this list if wider notability is demonstrated by a biographical article in Wikipedia -->


== See also ==
== Also see ==
Sister institutes:
Sister institutes:
*[[Institute of Cost and Works Accountants of India]]
*[[Institute of Cost and Works Accountants of India]]
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{{Reflist|2}}
{{Reflist|2}}


{{DEFAULTSORT:Institute Of Chartered Accountants Of India}}
[[Category:Accounting in India]]
[[Category:Accounting in India]]


[[Category:Professional accountancy bodies|India]]
[[Category:Professional accountancy bodies|India]]

[[Category:Indian professional associations]]
[[Category:Indian professional associations]]


Revision as of 14:04, 9 August 2010

The Institute of Chartered Accountants of India
File:ICAI Logo.jpg
The emblem of the Institute of Chartered Accountants of India as given by Sri Aurobindo
ICAI Facts
StatusStatutory Body Corporate responsible to regulate the Auditing and Accounting profession in India
PresidentCA. Amarjit Chopra[1]
Vice PresidentCA.G. Ramaswamy[1]
Membership153,600 (April 2009)[2]
Students518,798
Member's DesignationsACA & FCA
Websitewww.icai.org

The Institute of Chartered Accountants of India (ICAI) is a statutory body established under the Chartered Accountants Act, 1949[3] passed by the Parliament of India to regulate the profession of Chartered Accountancy in India. ICAI considers itself to be the second largest accounting body in the whole world[4] next only to CIMA in sheer terms of membership. Unlike most other Commonwealth countries, the word Chartered in Chartered Accountant does not refer to any Royal Charter since India is a republic. Chartered here represents the respected position of the members of ICAI[5]. After the Chartered Accountants Act, 1949 was brought into force on 1 July 1949, the term Chartered Accountant came to be used in place of Registered Accountants and Government Diploma Accountants.

Motto

The motto of ICAI is a quotation from the Upanishads (Kathopanishad) and it literally means a person who is awake in those that sleep. It was given to ICAI at the time of its formation in 1949 by Sri Aurobindo as part of its emblem:[6]

Ya Esa Suptesu Jagarti

History

The Companies Act, 1913 passed in Pre-independent India prescribed various books which had to be maintained by a Company registered under that act. 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. In 1918 a course called Government Diploma in Accountancy was launched in Bombay(now known as Mumbai). On passing this Diploma and completion of three years of Articled Training under a 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 it was decided that the Government shall maintain a Register called the Register of Accountants. Any person whose name was entered in such register was called Registered Accountant. Later on a board called the Indian Accountancy Board was established to advice the Governor General on Accountancy and the qualifications for Auditors. However it was felt that the Accountancy profession was highly unregulated and caused lots of confusion as regards the qualifications of auditors. Hence in the year 1948,just after independence in 1947 an Expert Committee recommended that a separate autonomous association of accountants should be formed to regulate the profession. The government took it seriously and passed the Chartered Accountants Act in 1949 even before India became a Republic. Under Section 3 of the said Act, ICAI is established a body corporate with perpetual succession and a Common Seal.

The Christening of the name Chartered Accountant to the professional accountants in India has a interesting story behind it. One may be given the view that this institute is backed by a Royal Charter. But it is not so, since there cannot be a royal charter in a Republic country like India. At the time of passing the Chartered Accountants Act, various other name like Certified Public Accountant etc., used for similar professionals in other countries, were considered. But the professionals were very adamant that the professionals should be christened only as Chartered Accountants. This was because many accountants had already acquired memberships of the Institute of Chartered Accountants in England & Wales and were practising in the name of Chartered Accountants. This had increased the respect and honour associated with designation, Chartered Accountant. Hence the professionals pressed for this name and won the same. Therefore failing the meaning associated with a Chartered Accountant, in India the name simply recognizes the respect and honour[7] associated with the profession and not any Royal Charter.

Role played by a Chartered Accountant

Chartered Accountants enjoy varied careers in the fields of accounting, auditing, Corporate Finance, Corporate Law[citation needed] and Taxation. Chartered Accountants enjoy a Statutory monopoly in audit of financial statements[8].

Training

Training provided by ICAI can be classified as under:

  1. Chartered Accountancy Course or Membership Course
  2. Courses for Qualified Members

Chartered Accountancy Course or Membership Course

Chartered Accountancy Course is considered as one of the toughest and quality course available as on date. As per the new scheme of education [9], the Chartered Accountant course is divided into three levels.Any person who wants to become a member of ICAI has to pass the following three levels of examinations and complete three years of Articled Training under a Practising Chartered Accountant:

  1. CPT (Common Proficiency Test)(Two Sessions of two subjects each)
  2. IPCC (Integrated Professional Competence Course) (Two groups of four and three papers respectively)/
  3. Final Exam (Two groups of four papers each)

The Syllabus new CA Final course is as follows:

Group I

  1. Paper 1: Financial Reporting (100 Marks)
  2. Paper 2: Strategic Financial Management (100 Marks)
  3. Paper 3: Advanced Auditing and Professional Ethics (100 Marks)
  4. Paper 4: Corporate and Allied Laws (100 Marks)-Section A: Company Law (70 Marks)-Section B: Allied Laws (30 Marks)

Group II

  1. Paper 5:Advanced Management Accounting (100 Marks)
  2. Paper 6: Information Systems Control and Audit (100 Marks)
  3. Paper 7: Direct Tax Laws (100 Marks)
  4. Paper 8: Indirect Tax Laws (100 Marks)-Section A: Central Excise (40 Marks)-Section B: Service Tax & VAT (40 Marks)-Section C: Customs (20 Marks)

Students are also allowed to undergo industrial training for a maximum period of 1 year in lieu of Articled Training. ICAI conducts CPT, IPCC and Final examinations in May and November each year at exam centres in major cities/regions in India and also abroad namely Abu Dhabi (U.A.E) , Dubai (U.A.E), Kathmandu (Nepal) etc. . With the introduction of the CPT in 2007, the CA course has become more popular among Indian students. It is interesting to see that Chartered Accountants teaching Chartered Accountancy students between 9.30 AM and 5.30 PM amounts to professional misconduct and proceedings in accordance with Section 21 read with 22 will be initiated against such members[10]. ICAI has also introduced Accounting Technician Certification[9] with the introduction of Integrated Professional Competence Course. Any person who passes Group-I of IPCC and completes one year practical training under a practising or non-practising member can apply for Accounting Technician Certification and designate himself as a Accounting Technician. Its being criticized that ICAI is making more students pass CPT and students are not able to pass next level. ICAI is earning a lot from this in the form of examination fees etc.

ICAI has entered into agreements with various universities like Indira Gandhi National Open University, Bharathiar University and Netaji Subash University to help the CA students acquire a undergraduate Degree easily. Accordingly any person who has passed IPCC can easily acquire a Bachelor of Commerce (B.Com) Degree just by writing a few papers.

Courses for Qualified Members of ICAI

In addition to the Chartered Accountancy Course, ICAI also conducts various Certificate courses for its members. Some of them are as follows:

Certificate Courses for Member

Part of a series on
Accounting
Early 19th-century German ledger
Major types
Key concepts
Selected accounts
Accounting standards
Financial statements
Bookkeeping
Auditing
People and organizations
Development
Misconduct
  1. Certificate Course on Enterprise Risk Management
  2. Certificate Course on Master in Business Finance
  3. Certificate Course on Corporate Governance
  4. Certificate Course on International Taxation
  5. Certificate Course on Forensic Accounting & Fraud Detection using IT & CAATs
  6. Certificate Course on International Financial Reporting Standards
  7. Certificate Course on Forex and Treasury Management
  8. Certificate Course on Derivatives
  9. Certificate Course on Valuation
  10. Certificate Course on Arbitration

Post Qualification Courses

  1. Information Systems Audit (ISA)
  2. CPE Course on Computer Accounting and Auditing Techniques (CAAT)
  3. Diploma in Insurance and Risk Management (DIRM)
  4. Management Accountancy Course (MAC)/ Corporate Management Course (CMC)/ Tax Management Course (TMC)
  5. International Trade Laws & World Trade Organisation (ITL & WTO)
  6. ERP Courses on SAP FA & MA Module, Microsoft Dynamics NAV

Accounting Standards issued by ICAI

As of 2010, the Institute of Chartered Accountants of India has issued 32 Accounting Standards.[11] These are numbered AS-1 to AS-7 and AS-9 to AS-32 (AS-8 is no longer in force since it was merged with AS-26). Compliance with Accounting Standards issued by ICAI has become a statutory requirement with the notification of Companies (Accounting Standards) Rules, 2006 by the Government of India.[12]

Convergence with IFRS

ICAI has decided to converge its Accounting Standards with IFRS for accounting periods commencing on or after 1 April 2011 for listed entities and other public interests entities such as banks, insurance companies and large-sized entities. For smooth transition to IFRS, ICAI has taken up the matter of convergence with the National Advisory Committee on Accounting Standards and various regulators such as the RBI, SEBI and IRDA. IASB, the issuer of IFRS, is also supporting the ICAI in its endeavours towards convergence.

Audit and Assurance Standards issued by ICAI

As of 2010 ICAI has issued 43 Engagement and Quality Control Standards[13] (formerly known as Auditing and Assurance Standards) covering various topics relating to auditing and other engagements. All Chartered Accountants in India are required to adhere to all these standards. If a Chartered Accountant is found not to follow the said standards he is deemed guilty of professional misconduct. ICAI has classified the standards under five headings to demonstrate compliance with International Standards on Auditing issued by the IAASB of IFAC.

Presidents

ICAI's first president was CA. G. P. Kapadia. He acted as the president for the nascent years of ICAI's existence from 1949 to 1952. The presidents are now elected by the Council of ICAI to serve a one year term. It has become a tradition to promote the vice president as the president for the next term. Notable past presidents include CA. Rahul Roy (1998-99), CA. Kamlesh Shivji Vikamsey (2005-06) and CA. T. N. Manoharan (2006-07).

Also see

Sister institutes:

References

  1. ^ a b ICAI elects New Torch Bearers, ICAI, February 12, 2010
  2. ^ Statistics - Members on 1/4/2009, retrieved from ICAI: Key statistics on 2010-06-26
  3. ^ "Chartered Accountants Act 1949 as amended in 2006" {PDF)
  4. ^ About ICAI from ICAI website
  5. ^ Respected Character of Professional
  6. ^ The ICAI Logo Was Conceptualised by Sri Aurobindo, The Chartered Accountant, July 2006, page 122
  7. ^ Respected Character of Professional
  8. ^ Section 226(1) of Companies Act, 1956 requires that an auditor be a Chartered Accountant.
  9. ^ a b ICAI Board of Studies Announcement
  10. ^ ICAI notification against coaching classes during office hours of Articled Assisstants
  11. ^ Accounting Standards issued by ICAI
  12. ^ Companies (Accounting Standards) Rules, 2006
  13. ^ Engagement and Quality Control Standards issued by ICAI
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