Chronicles Of AccountancyAccounting | 28th June, 2020
A long time ago, when the British East India Company was ruling in our country, an Act came into force by which several books were prescribed which were required to be maintained by a registered company under the Companies Act, 1913. There was a need of an Auditor to maintain these books. To act as an auditor, the auditors have to obtain a certificate from the local government according to the basic qualifications.
A diploma course named Government Diploma in Accounting (GDA) was started in Bombay in 1918. In this, the desired candidates had to undergo articleship for three years, and they had to pass the examination, the passed candidates were rewarded with an unrestricted certificate. Later in 1920, the issue of restricted certificates was also eliminated.
After the establishment of the Society of Auditors in Madras, in 1930 the government of India decided to keep records of members practising as an auditor,the mentioned record or register was called Register of Accountants. The persons whose names were enlisted in the register were called Registered Accountant.
Institute of Chartered Accountants of India (ICAI)
In 1932 after two years, an Accountancy Board was established to advise the Governor General in the Council of India, on the points of accounting, and on the qualification standards of auditors along with necessary conduct. In the year 1930, the Indian Accounting Board conducted its first examination and in the same year the GDAs were exempted from taking the test of auditors. In 1943, before the complete abolition of the GDA, the Accounting Board took the first final examination of auditors.
In independent India, a step towards the formation of a special committee, in which a proposal to start an autonomous association of accounting to regulate the profession of auditors.Accepting the report of the expert committee, the Government of India had passed the Chartered Accountant Act in 1949 just before becaming India a Republic country. On 1st July 1949, the Institute of Chartered Accountants of India was introduced as a statutory body and the Chartered Accountant Act came into effect and with this the Registered Accountants were replaced with Chartered Accountants.