Long ago, when our country was under the rule of the British East India Company, an act came into effect which stipulated several books that were required to be maintained by a registered Company under The Companies Act of 1913. The requirement of an auditor was also there to maintain these books.
The auditors need a Certificate from the local government to act as an auditor, as the basic qualification. The Unrestricted Certificate holder person had the freedom to act as an auditor throughout the country, but a Restricted Certificate bearer could only act within the allotted province or language specified in the certificate.
Read Also: Best 5 Business Opportunity for Chartered Accountants in India
Further, in 1918 a diploma course started in Bombay, referred to as Government Diploma in Accounting (GDA). In this diploma course, the desired candidate was required to do an articleship of three years and had to pass the examination, qualified candidates were rewarded with the unrestricted certificate. Afterwards, the issue of restricted certificates had also been ended in 1920.
In the year 1930, after the Society of Auditors was founded in Madras, the government of India decided to keep records of members practising as an auditor, the mentioned record or register called the Register of Accountants and the person whose name was enlisted in the register alias as a Registered Accountant.
Interesting One: How Chartered Accountant Aspirants Motivate Themselves
After two years in 1932, an Accountancy board was developed called as Indian Accountancy Board to advise the Governor General in the Council of India on the points of Accountancy and the required conduct along with qualification standards of the auditors. The Indian Accountancy Board held its first examination in the year 1933 and GDAs have been exempted from taking the test of auditors, in the same year. Before GDA was completely abolished in 1943, the first final examination of the auditors was taken by the Accountancy Board.
In independent India, a step to form an expert committee that recommended to start of an autonomous association of accountants to regulate the profession of auditors was taken. The Government of India after accepting the report of the expert committee passed the Chartered Accountant Act in 1949 just before India became a Republic country. However, the Chartered Accountant Act came into effect on 1 July 1949 and the Institute of Chartered Accountants of India was introduced. Related to the same, as per section 3 of this act, the ICAI is founded as a body corporate with perpetual succession and a common seal.
The Charter word from the professional designation, Chartered Accountant is a controversial term, cause Charter refers to a royal charter in many countries. However many titles were suggested at the time of the passing Chartered Accountant Act, used for the same profession in other countries, like Registered Accountants.
At the same, many accountants have registered themselves as a member of the Institute of Chartered Accountants in England & Wales and other societies of Chartered Accountants and continue to practise as Chartered Accountants. After so much debate in the Indian Constituent Assembly, the Registered Accountants has been replaced with Chartered Accountants and came into effect on 1 July 1949 and 1st July is celebrated as Chartered Accountants Day every year.
The History of SAG Infotech Private Limited
