The Institute of Chartered Accountants of India (ICAI) is a statutory body, which was in the news recently on the heels of the Chartered Accountants (Amendment) Bill. It will be useful for the IAS Exam candidates to know some key facts about this prestigious institute.
Aspirants preparing for the upcoming UPSC Preliminary and Main examinations should also be aware of other important Constitutional, Statutory and Quasi-Judicial Bodies that are frequently in the news.
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Key Facts about ICAI
1. The Institute of Chartered Accountants of India (ICAI) was established by the Parliament under the Chartered Accountants Act, 1949 to regulate the profession of Chartered Accountancy in India.
2. The ICAI functions under the administrative control of the Ministry of Corporate Affairs. Its operations are managed by a Council as per the provisions of the Chartered Accountants Act, 1949 and the Chartered Accountants Regulations, 1988.
3. The details of the Central Council are as follows:
- It comprises 40 members, out of which 32 are elected by the Chartered Accountants and the remaining are nominated by the Central Government. The nominated members generally represent the Ministry of Finance, Ministry of Corporate Affairs, Comptroller and Auditor General of India (CAG), Securities and Exchange Board of India (SEBI) and other stakeholders.
- The Council has a term of 3 years and is headed by the President.
- The President is elected by the Council for a one-year term.
- The Council can frame regulations under the Act.
- It can also constitute necessary standing and non-standing Committees
4. ICAI has several regional offices, branches and 30 Chapters abroad (out of which 8 chapters are in the Middle East region).
5. Its regulatory functions include:
- To conduct investigations on receiving complaints and information.
- Create a code of ethics that every member should follow.
- Set up a Quality Review Board that will perform the following functions:
- Make recommendations regarding the quality of services that the ICAI should provide.
- Review the quality of services given by the members.
- Guide the members when it comes to improving the quality of services and various other regulatory statutory requirements.
6. The Institute of Chartered Accountants of India (ICAI) conducts the Chartered Accountancy examinations in the country. It plays a significant role when it comes to the education and training of CA members and students. Some education-related functions of ICAI are given below:
- Distant Mode of Education
- Education Through Accredited Institutions, Branches, e-lectures, video lectures and webinars.
- Continuous review and revision of the curriculum
- Publications/books
- Enable Articleship allocation to students
- Subscription and exam fee management
- Refresher and certificate courses
7. ICAI is a key national body, which offers input to various bodies and departments like:
- Comptroller & Auditor General of India
- Reserve Bank of India
- Securities and Exchange Board of India
- Central Board of Direct Taxes
- Insurance Regulatory and Development Authority
- Departments of Central and State Governments
- Departments of Public Enterprises
- Ministry of Corporate Affairs etc
8. The ICAI acts as the authority, Manage Disciplinary Committee, Board of discipline and Director (Discipline), which has the same powers as that of a civil court under the code of civil procedure,1908 with regard to:
- Summoning and enforcing the attendance of any person and examining him or her on oath
- Discovery and production of any document
- Receiving evidence of affidavit
- Constitute an appellate tribunal for the members of the ICAI who are aggrieved by the order of the Disciplinary Committee or the Board of Discipline
9. Other functions of the ICAI include:
- Formulation of Accounting Standards
- Financial Report Review
- Monitoring Quality through Peer Review
- Focus on Capacity Building in the emerging context
10. The Institute of Chartered Accountants of India (ICAI) recently launched the Civil Services Orientation & Mentorship program for CA students and CA members. CA students who are preparing for UPSC can apply on the official website of ICAI i.e. icai.org. There is no registration fee for this programme.
Candidates who have already cleared their CA final exams and fulfil other eligibility criteria given in the official notification released by the UPSC for the Civil Services examination can appear for it.
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