CAs have a very important role in the development of our country. Moreover, the ICAI is an institute that regulates the accounting standards in India.
Chartered Accountants’ (CA) day is celebrated annually on 1 July with an aim to commemorate the findings of the Institute of Chartered Accountants of India (ICAI) by Parliament in 1949. Our Founding Partner CA Sushil Kumar Khowala, being felicitated by Jamshedpur Branch of CIRC-ICAI on occasion of 74th CA Day 2022
The ICAI is the only licensing and regulatory body for the profession of accounting and financial auditing in India. Every finance and accounting organisation including National Financial Reporting Authority (NFRA) is required to follow the recommendations of accounting standards made by them.
History
Before India became independent, the British government in India maintained accounts as per the provisions of the Companies Act. The auditor appointed for this task was expected to be certified but over the years, the designation morphed to various degrees where the accountancy profession was largely unregulated and created confusion with regards to the qualifications of auditors.
In 1948, after India got independent, an expert committee recommended that there should be a separate autonomous association of accountants to regulate their profession in the country. The Indian government accepted this recommendation and subsequently passed an act in the Parliament that led to the establishment of a statutory body named The Institute of Chartered Accountants of India (ICAI).
Significance
CAs have a very important role in the development of our country. Moreover, the ICAI is an institute that regulates the accounting standards in India.
The celebration of CA DAY is considered to be highly significant as the establishment and successful running of ICAI for all these decades has been a feat worth all the celebrations. ICAI is the world’s second-largest professional accounting body and the largest professional accounting body in India under the ownership of the Ministry of Corporate Affairs, Government of India. The first largest professional accounting body in the world is AICPA – American Institute of Certified Public Accountants.
Becoming a CA is one of the hardest career options in India. From its single-digit approval rates every year to the long and strenuous process filled with vigorous test-taking and educating practical experience (in article-ship), there are various struggles that CA aspirants need to overcome. CA Day also helps people who are on this journey or have finally completed this daunting challenge to celebrate their achievements.
Happy CA Day 2022!