Chartered Accountants Day 2020: Important date, History of Chartered Accountants Day, ICAI & Facts

Chartered Accountant’s Day 2020: Chartered Accountant’s Day is observed on July 1 to commemorate the establishment of the Institute of Chartered Accountants of India every year. Get the information about the history, ICAI and its facts.

Sheena | Updated Jun 17, 2020 12:40 PM

Chartered Accountants Day 2020: Important date, History of Chartered Accountants Day, ICAI & Facts

Chartered Accountant’s Day 2020 

The 1st of July is celebrated in India as a National Chartered Accountant Day. The day is observed to commemorate the establishment of the Institute of Chartered Accountants of India (ICAI) on 1 July 1949. It is also celebrated to honor the Chartered Accountants across the nation. A chartered accountant is a profession that lends direction to any country's financial condition.

What is the history of ICAI/Chartered Accountant's Day?

The Chartered Accountant profession origin can be traced back to the days of pre-Independence. The British government in India passed the Companies Act back in 1913, which had a specified list of books that must be maintained by any company registered under the Act. The Act also provided for an Auditor to be appointed who had the power to audit these books. In Bombay, the Government Diploma in Accountancy course was launched five years later. This course had a similar structure to the current CA course, complete with a three-year training duration. Those who completed the course could be working all over India as an Auditor.

In 1930, The Government of India started to maintain a register of accountants and were referred to as Registered Accountants to those accountants whose name was entered in this register. However, the accounting profession remained unregulated even with all these practices until an expert committee created in 1948 recommended that an autonomous body be formed for enhanced regulation.

However, many Indians had already been members of the Institute of Chartered Accountants in England and Wales (ICAEW), and were recognized by the term Chartered Accountants. Despite the controversy, the term Chartered Accountants was retained, since it was already widely used. Therefore, the Chartered Accounts Act, 1949 was passed and the ICAI was established, the Chartered Accountant became the preferred term, rather than the previously used Registered Accountant. Since then, Chartered Accountant's Day in India has been commemorated on 1 July.

How is Chartered Accountant's Day celebrated?

Chartered accountants have been the pioneers of the accounting profession and have led its growth internationally. Chartered Accountants work in the areas of tax planning, capital budgeting, budget analysis, funding or any other practice, account book preparation, and even in other fields. So, Chartered Accountant's Day is celebrated every year on 1st July to honour the profession and to recognize its significance in an organization as well as in the national economy.

Every organization with Chartered Accountants celebrates this day in their own way. Many organizations carry out some events for their organization's Chartered Accountant and some take care of their clients by launching discount deals in their office premises when carrying out awareness activities, events, donation activities, etc.

What is ICAI?

ICAI is known as the national accounting body of India. It functions to control the chartered accounting profession in India. ICAI is India 's sole licensing and regulating body for the financial audit and accounting profession.

ICAI also recommends accounting standards to be adopted by companies in India to the National Accounting Standards Advisory Committee (NACAS), and also decides on accounting standards to be practiced by certain forms of organizations. 

It works closely with the Indian government, Reserve Bank of India, and India's Securities and Exchange Board to set the country's financial standards. Under the Companies Act, 1956, only members of ICAI can be appointed auditors of an Indian company.

Facts about ICAI

ICAI is recognized as India's oldest professional bodies formed by an act of parliament in 1949

It is also the world's second-largest accounting organization after the American Institute of Certified Public Accountants (CPA)

There is also no kind of reservation at ICAI and the reservation criteria are not followed

ICAI 's official emblem has the ‘Garuda’ and also has an official motto ‘Ya Esha Supteshu Jagriti’ which means ‘the one who is awake in those that sleep’. The motto was taken from Upanishads which was given by Sri Aurobindo Ghosh

CA Gopaldas Padamsey Kapadia was the first person to receive the ICAI certificate and he is also the first ICAI president.

Disclaimer: The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

Chartered Accountant’s Day - FAQ

1. Who is the first Chartered Accountant in India?

CA Gopaldas Padamsey Kapadia was the first Indian to be issued a membership certificate by ICAI. He received the certificate of membership on 9 June 1950. He was a founding member and ICAI's first President.

2. What is Chartered Accountants Day?

The day is observed to commemorate the establishment of the Institute of Chartered Accountants of India on 1 July 1949. It is also celebrated to honor the Chartered Accountants across the nation.

3. By which act the Institute of Chartered Accountants of India was established?

The Institute of Chartered Accountants of India is a statutory body set up by a Chartered Accountants Act, 1949. ICAI is India 's sole licensing and regulating body for the financial audit and accounting profession.

4. What is the role of Chartered Accountant?

Chartered accountants have been the pioneers of the accounting profession and have led its growth internationally. Chartered Accountants work in the areas of tax planning, capital budgeting, budget analysis, funding or any other practice, account book preparation, and even in other fields.