Institute of Chartered Accountants of India
The Institute of Chartered Accountants of India (ICAI) is the statutory body established under the Chartered Accountants Act, 1949, responsible for regulating the accountancy profession, setting accounting and auditing standards, and administering education and examinations for Chartered Accountants in India.
The Institute of Chartered Accountants of India (ICAI) is one of the oldest and largest accounting bodies in the world, established by an Act of Parliament in 1949. It operates under the aegis of the Ministry of Corporate Affairs and regulates the profession of chartered accountancy in India. ICAI membership is mandatory for all practising chartered accountants in India.
ICAI's primary functions include prescribing the syllabus and conducting examinations for the CA qualification (Foundation, Intermediate, and Final levels), setting accounting standards (which form the basis for the Ind AS framework), setting auditing and assurance standards, maintaining the professional and ethical standards of its members, and conducting quality reviews of audit firms.
In terms of standard-setting, ICAI's Accounting Standards Board (ASB) issues accounting standards, while its Auditing and Assurance Standards Board (AASB) issues standards on auditing. These standards are then reviewed and adopted by the government as mandatory standards for companies covered under the Companies Act and other regulations.
ICAI also operates a Quality Review Board (QRB) that conducts quality reviews of audit firms of public interest entities. This function has gained prominence in the context of audit quality concerns, though the establishment of NFRA has now taken over some of these oversight responsibilities for larger entities.
The disciplinary mechanism of ICAI operates through the Disciplinary Committee, which can investigate complaints against CA members for professional misconduct. As noted, for companies within NFRA's jurisdiction, the ICAI disciplinary process is superseded by NFRA. For other matters — including complaints about members who are not statutory auditors of large companies — ICAI retains its disciplinary authority.
For investors, ICAI's role in establishing accounting and auditing standards directly affects the quality and comparability of financial statements they rely on for investment analysis. The CA qualification is also widely represented in corporate finance, treasury, controllership, and CFO roles across Indian listed companies.