The Institute of Chartered Accountants of India (ICAI) is a statutory body established under the Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for the regulation of Chartered Accountancy Profession in India. It was formed on 1st July 1949 and this day is now celebrated as Chartered Accountant’s Day in India.
ICAI is the only licensing cum regulating body of the Accountancy profession in India and is now the 2nd largest Accounting Body in the World after American Institute of Certified Public Accountants which is the largest.
Members of the Institute are called Chartered Accountants and only a Chartered Accountant can be appointed as a Statutory Auditor in India under the Companies Act, 1956.
Motto of ICAI
The motto of the ICAI is “Ya Aeshu Suptaeshu Jagruti.” The motto literally means “a person who is awake in those that sleep”. It is a quotation from the Upanishads
ICAI uses Garuda as its emblem, with the mythical eagle in the centre.
Chartered Accountant’s Logo
Apart from its Emblem and Motto Song, 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. The logo is free for use by all members of ICAI subject to certain conditions.
Membership of ICAI
Members of the Institute are known as Chartered Accountants. Becoming a member requires passing 3 Levels of examinations, three years of mandatory Internship Training (known as Articleship) and meeting other requirements under the Act and Regulations. The members of ICAI can use the title CA before their names. A member of ICAI may either be an Associate Chartered Accountant (A.C.A.) or a Fellow Chartered Accountant (F.C.A.) based on his experience.
Members of the Institute with less than 5 years of experience are referred to as Associate Chartered Accountants and Members with more than 5 years of experience are called Fellow Chartered Accountants.
Management of ICAI
The Management of ICAI is vested with its members who themselves appoint their Council by voting.
The Members of the Institute appoint an All India Council which is elected every 3 years by voting, and the 32 Member Council so elected chooses a President from amongst them every year. The New President usually takes charge in the month of February.
It has become a convention in ICAI to elevate the Vice President to the post of the President in his subsequent term. Though there is no legal requirement to do so, vice presidents are elevated as presidents on account of their experience acting as vice presidents.
Request for more Power
ICAI has been constantly pressing the Govt. for more jurisdictional powers to punish those found guilty. There have been a few scams in the past in which the Auditors have been found guilty of gross negligence but ICAI has not been able to severely punish the same due to lack of adequate powers.
ICAI also has sent a proposal to the Government of India to amend the Chartered Accountants Act, 1949 in order to enable to it to impose a fine of Rs. 1,00,00,000/- on audit firms if they are found guilty of colluding with companies to commit a fraud.
Some Key Facts about ICAI
- It has more than 1,70,000 Members spread throughout the Country and in Different Parts of the World
- More than 7,00,000 Students are currently enrolled for this Course
- ICAI has also initiated a Virtual Coaching Classes Program for the benefit of CA Students
- ICAI has signed various MoU’s/MRA’s with Intl. Accounting Bodies which will help its Members to work in countries outside India as well.
- It is playing a very active role in Convergence of IFRS in India