Long ago, when our country was under the rule of British East India Company, an act came into the effect which stipulated several books that were required to maintain by a registered Company under The Companies Act, 1913. The requirement of an auditor was also there to maintain these books. The auditors have need of 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.
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Further, in 1918 a diploma course started in Bombay, referred as Government Diploma in Accounting (GDA). In this diploma course, desired candidate required to do articleship of three years and had to pass the examination, qualified candidates were rewarded by the unrestricted certificate. Afterwards, the issue of restricted certificates had also been ended in 1920.
In the year 1930, after the Society of Auditors founded in Madras, the government of India decided to keep records of members practising as an auditor, the mentioned record or register called Register of Accountants and the person whose name was enlisted in the register alias as a Registered Accountant.
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After two years in 1932, an Accountancy board was developed called as Indian Accountancy Board to advise the Governor General in 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 has been exempted from taking the test of auditors, in the same year. Before GDA has been completely abolished in 1943, the first final examination of the auditors has been taken by the Accountancy Board.
In independent India, a step to form an expert committee that recommended to start an autonomous association of accountants to the 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 in 1 July 1949 and the Institute of Chartered Accountants of India introduced. Related to the same, as per the 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 royal charter in many countries. However many titles were suggested at the time passing Chartered Accountant Act, used for the same profession in other countries, like Registered Accountants.
At the same, many accountants has registered themselves as a member of the Institute of Chartered Accountants in England & Wales and other societies of Chartered Accountants and continue to practising 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 celebrated as Chartered Accountants day every year.
The History of SAG Infotech Private Limited
