The Institute of Chartered Accountants of India, abbreviated as ICAI, is India's largest professional

accounting body under the administrative control of Ministry of Corporate Affairs, Government of
India. It was established on 1 July 1949 as a statutory body under the Chartered Accountants Act,
1949 enacted by the Parliament for promotion, development and regulation of
the profession of Chartered Accountancy in India.[5]

In India, accounting standards and auditing standards are recommended by the National Financial
Reporting Authority (NFRA) to the Government of India which sets the Standards on Auditing (SAs) to
be followed in the audit of financial statements in India.

Members of the institute are known as ICAI Chartered Accountants or ICAI

Accountants (either Fellow or Associate). However, the word chartered does not refer to or flow from
any Royal Charter. ICAI Chartered Accountants are subject to a published Code of Ethics and
professional standards, violation of which is subject to disciplinary action. Only a member of ICAI can
be appointed as statutory auditor of a company under the Companies Act, 2013. The management of
the institute is vested with its council with the president acting as its chief executive authority. A
person can become a member of ICAI and become a financial (i.e. statutory) auditor of Indian
Companies. The professional membership organization is known for its non-profit service. ICAI has
entered into mutual recognition agreements with other professional accounting bodies worldwide
for reciprocal membership recognition. ICAI is one of the founder members of the International
Federation of Accountants (IFAC), South Asian Federation of Accountants (SAFA), and Confederation
of Asian and Pacific Accountants (CAPA). ICAI was formerly the provisional jurisdiction for XBRL
International in India. In 2010, it promoted eXtensible Business Reporting Language (XBRL) India as a
section 8 Company to take over this responsibility from it. Now, eXtensible Business Reporting
Language (XBRL) India is an established jurisdiction of XBRL International Inc.

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 the accountancy
profession in India.[6] ICAI is the second largest professional accounting body in the world in terms of
number of membership and number of students after the AICPA.[7] It prescribes the qualifications for
a Chartered Accountant, conducts the requisite examinations and grants Certificate of Practice.

History

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 A 2018 stamp dedicated to the 70th anniversary of the Institute

of Chartered Accountants of India Government Diploma in

Accountancy Certificate

The Indian 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 an issue and in the language specified in the restricted certificate. In 1918 a course called
Government Diploma in Accountancy was launched in Sydenham College of Commerce and
Economics of Bombay (now known as Mumbai). 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 entitling the holder to practice as an auditor throughout
India. Later on, the issue of restricted certificates was discontinued in the year 1920.

In 1930, 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.[8] 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 much confusion as
regards the qualifications of auditors. Hence in the year 1948, just after independence in 1947, an
expert committee was created to look into the matter.[9] This expert committee recommended that a
separate autonomous association of accountants should be formed to regulate the profession. 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.

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. This
designation inherited a general public impression that Chartered Accountants had better
qualifications than Registered Accountants.[10] 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.[11]

On 23 September 2019 chartered accountancy students organized protests under leadership of

teacher CA Praveen Sharma, named "Dear ICAI please change" at over 200 institute branches across
India and on social media demanding among other things right to re-checking of CA exam answer
sheets. At present as per CA regulations, re-checking of answer sheets are not allowed.[12] Students
were demanding this right since 2018. A protest was also called in December, 2018 but after
assurance by the council and formation of a committee to review the examination process the
protest was called off.[13] Students were able to gather support of many public figures which includes
Congress leader Rahul Gandhi, Past President of ICAI Mr. N. D. Gupta, renowned accountant
Mr. Motilal Oswal, Mr. Mohandas Pai, Mr. Raghav Chadha, etc. on social media.[14]

Motto

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New CA Logo for exclusive use by Chartered Accountants

The motto of the ICAI is Ya Aeshu Suptaeshu Jagruti (Sanskrit),[15] which literally means "a person who
is awake in those that sleep". It is a quotation from the Upanishads (Kathopanishad). It was given to
the ICAI at the time of its formation in 1949 by Sri Aurobindo[16] as a part of its emblem. CA. C. S.
Shastri, a Chartered Accountant from Chennai 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 Southern India. In reply to this request, Sri Aurobindo gave him the emblem with a Garuda,
the mythical eagle in the center and a quotation from the Upanishad: Ya Aeshu Suptaeshu Jagruti.
The emblem along with the motto was placed at the first meeting of the Council of the Institute and
was accepted amongst many other emblems placed by other members of the council.
Apart from its emblem, ICAI also has a separate logo for its members. As a part of a brand building
exercise, ICAI introduced this separate new CA logo for the use of its members in 2007.[17] The logo is
free for use by all members of ICAI subject to certain conditions.[18] The logo was launched by the
then Minister of Corporate Affairs, Prem Chand Gupta at the occasion of the Chartered Accountant
Day (1 July) in the presence of the then President of ICAI Sunil Talati. Members of ICAI cannot use the
ICAI emblem, but they are encouraged to use the CA logo instead on their official stationery.