July 1 will be the CA day just like every year. The 75th CA Day Anniversary of its foundation will be celebrated by the Institute of Chartered Accountants of India (ICAI) on July 1 as it is 2023. To date, in a vast country like India, a country with at least a billion people, there are only 4 lakh Chartered Accountants of the Indian Institute of Chartered Accountants. Due to the fact that this organization has set high standards for clearing the exam, there are hundreds of Chartered accountants who are worth millions. In fact, there are many aspirants who want to become accountants, but few are able to clear the exam and become certified as chartered accountants.
The USP of this profession is the fact that it is the only profession in India that is licensed for the purpose of financial audit of any organisation and across the globe, it is the second-largest body imparting education related to accounting and finance.
It is undoubtedly a matter of pride to be a member of such a big and esteemed body and so to honour these members and their existence, every year we celebrate Chartered Accountants’ day date on 1st July.
CA’s Roles and Responsibilities
Chartered Accountants (CAs) are an indispensable part of the financial sector. The role of a Chartered Accountant is very important in any business organisation, regardless of the size and nature of the firm. An array of his/her responsibilities expands from preparing financial statements and developing financial plans to auditing, tax filings, bookkeeping and so on. They are entrusted with various responsibilities such as auditing financial records, ensuring compliance with laws and regulations, providing expert financial advice, and facilitating sound decision-making.
CAs maintain the highest ethical standards, demonstrating integrity, objectivity, and confidentiality in their work. Their expertise extends beyond numbers, encompassing strategic financial planning, risk assessment, and business evaluation. As trusted professionals, CAs contribute to the stability and transparency of financial systems, enabling businesses to thrive and stakeholders to make informed decisions based on accurate financial information.
When CA Day Is Celebrated?
Each year, on the 1st of July, professionals in the field of accountancy, and Chartered Accountants (CAs), celebrate CA Day. This significant occasion serves as a platform to acknowledge and pay tribute to the immeasurable impact that CAs make across diverse sectors of the economy. It stands as a testament to their exceptional proficiency, unwavering professionalism, and unwavering dedication to upholding financial morality. CA Day is considered a reminder of the professionals’ indispensable roles in shaping the corporate milieu and fostering a business climate of utmost financial transparency.
Get to Know 5 Significant Points About ICAI :
- It is known as the oldest professional bodies in India which came into being by an act of parliament in 1949.
- It is also the second biggest accounting organization in the world after the American Institute of certified public accountants (CPA).
- Also, there is no kind of reservation in the ICAI and the reservation criteria are not followed
- The official emblem of the ICAI is the ‘Garuda’ and has Upanishad quotes given by Sri Aurobindo.
- The first person to get the ICAI certificate was CA Gopal das Padamsee Kapadia and he is also the first president of the ICAI
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Origin and History Of ICAI
The origin of the Chartered Accountants (CA) as a profession can be found in the period before the independence of the country. The Companies Act was constituted by the British government in 193 which included some rules and laws to be followed by the companies. The Act included a list of books which was mandatory to be maintained by the companies registered under the act.
The audit of such was also made compulsory for such companies by a registered auditor. In 1918, a Diploma in Accountancy course was started in Mumbai by the government. The course was quite simial to the present course of CA, along with a training period of three years. All the aspirants who cleared the course were eligible to be appointed as an Auditor throughout the country.
In 1930, the government decided to maintain a register of accountants. All the accountants listed under the register were called Registered Accountants. Practices were developing but the profession of accountant remained unregulated until 1948 when a suggestion to create an autonomous body was made by an Experts Committee for the regulation of accountants and their practices. Until then, all the accountants in India were registered under the Institute of Chartered Accountants in England and Wales (ICAEW) and were considered Chartered Accountants under the institute.
Controversies have risen against the use of the word ‘Chartered’ but it was already under use and hence retained. Hence, when the Institute of Chartered Accountants on India (ICAI) was incorporated under the Chartered Accountants Act, 1949, the use of the term ‘Chartered’ was legalised instead of ‘Registered’. Hence, 1st July is considered as the ICAI Foundation Day or CA Day in India since 1949.
The word Chartered, as used for Chartered Accountants in India, has no relation with the royal charter of the British since the independence of the country.
1913 – Appointment of Auditor Became mandatory
The provenance of the CA profession lays back in the days before Independence. In 1913, the Companies Act was passed by the British government in India which mandated the regulation and maintenance of certain books of accounts for every company registered under the Act. In addition, as per the act, it also became mandatory to appoint an Auditor to audit these books.
1918 – Government Diploma in Accountancy
After five years, a course was launched in Mumbai with the name “ Government Diploma in Accountancy”. This course had the same pattern & standard as the present CA course along with a three-year training period. Those who successfully qualified for this diploma and completed the training of three years were allowed to practice a profession of an Auditor throughout India.
1930 – Registered Accountant
In 1930, the new Government of India (GOI) started maintaining a register of accountants which carried the names of accountants and such individuals were referred to as Registered Accountants.
1949 – Chartered Accountants Act and ICAI
No step was significant enough to efficiently regulate the profession of accountancy. Then an expert committee which was formed in 1948 suggested the formation of an autonomous body to regulate this profession and so the Chartered Accounts Act of 1949 was passed and the ICAI was formed.
The title “Chartered Accountant” is superannuated with the title “Registered Accountant”.
By this time many Indians were members of the Institute of Chartered Accountants in England and Wales (ICAEW) and were titled” Chartered Accountants “. In this way, the title “Chartered Accountant” is superannuated with the title of “Registered Accountant”.
What Is the Importance of CA Day?
CA Day holds immense importance, especially for accountant professionals as it commemorates the invaluable contributions made by chartered accountants (CAs) worldwide. The most-awaited occasion of the year for CAs reminds them of the contribution they give to various businesses. It brings together professionals, organisations, and the public to acknowledge and applaud the exceptional expertise, unwavering professionalism, and high ethical standards demonstrated by CAs. Moreover, CA Day underscores the significance of continuing professional development and the need for widespread financial literacy. As we are going to celebrate this special day, we should express endless gratitude towards the professionals who make an organisation financially strong and contribute to the nation’s growth.
CA Day 2023
CA Day is traditionally celebrated on July 1st each year. Therefore, CA Day 2023 will also be observed on July 1st. The day is celebrated across the globe to commemorate the establishment of the Institute of Chartered Accountants of India (ICAI). The CA Day 2023 will mark the 75th anniversary of the Institute of Chartered Accountants India (ICAI). Like every year, CA Day 2023 is also going to be celebrated on the 1st of July as the day is recognised as the foundation day of the ICAI. Chartered accountancy is one of the oldest and most respected professions in India and CA professionals are the backbone of the nation’s economy and the financial management system of organisations across the nation. The ICAI is a separate body that is responsible for regulating and conducting the ICAI exam through which interested candidates can become CA.
Celebration of CA Day
Every business has a Chartered Accountant who manages its finances, outlines issues related to finances, and makes informed decisions. Their work includes auditing, tax filings, bookkeeping, and so on. Their roles play a significant part in a business’s success. Therefore, to encourage them and acknowledge their importance in any business and national economy, we celebrate CA Day 2023 every year on July 1. So, to Laurel the profession and to acknowledge its importance in an organisation as well as in the national economy, we celebrate CA Day 2023 every year on 1st July.
Organisations celebrate CA Day in their own way to express gratitude towards CAs. On the occasion of CA Day 2023, businesses can give their CAs special treatment by offering them gifts, hosting an office party, or engaging in some other activities. Some businesses even introduce discount offers to their valuable clients on this day.