Chartered accountants were the first accountants to form a professional accounting body, initially established in Scotland in 1854. The Edinburgh Society of Accountants (formed 1854), the Glasgow Institute of Accountants and Actuaries (1854) and the Aberdeen Society of Accountants (1867) were each granted a royal charter almost from their inception. The title is an internationally recognised professional designation, and is generally equivalent to the American certified public accountant designation.
Chartered accountants work in all fields of business and finance, including audit, taxation, financial and general management. Some are engaged in public practice work, others work in the private sector and some are employed by government bodies.
Chartered accountants' institutes require members to undertake a minimum level of continuing professional development to stay professionally competitive. They facilitate special interest groups (for instance, entertainment and media, or insolvency and restructuring) which lead in their fields. They provide support to members by offering advisory services, technical helplines and technical libraries. They also offer opportunities for professional networking, career and business development.
Chartered accountants in Australia belong to the Chartered Accountants Australia & New Zealand formerly Institute of Chartered Accountants in Australia and use the designatory letters CA. Some senior members (at least 10 years' membership) of the institute may be elected fellows and use the letters FCA. Of equal legal status and recognition in Australia as qualified professional accountants are Institute of Public Accountants (IPA) and CPA Australia. On 28 June 2016, ACCA and CA ANZ, the Chartered Accountants Australia and New Zealand, have announced a strategic alliance which will add value to members locally and globally.Provide an opportunity for dual membership of both bodies. ACCA members resident in Australia and New Zealand will be invited to apply for CA membership and CA ANZ members will be invited to apply for ACCA membership, subject to meeting the eligibility criteria of the other body
The Institute of Chartered Accountants of Bangladesh (ICAB) is the national professional accounting body of Bangladesh. Established in 1973, it is the sole organization with the right to award the chartered accountant designation in Bangladesh. Senior members (at least five years' membership) of the institute are called "fellow members" and use the letters FCA.
Bermuda The Institute of Chartered Accountants of Bermuda works with the Canadian Institute of Chartered Accountants and American Institute of Certified Public Accountants, and is the sole organisation in Bermuda with the right to award the chartered accountant designation.
In Canada, chartered accountants belong to the Canadian Institute of Chartered Accountants (CICA) by way of membership in at least one provincial or territorial institute (or "order" in Quebec). In order to become a member, a candidate requires an undergraduate degree plus experience and, depending on the province, additional education. Candidates in all provinces are required to pass the three-day Uniform Evaluation (UFE).
Since 2012, the CICA has been in a process of unification with the other two accounting bodies in Canada. Canadian CAs, along with Certified General Accountants (CGAs) and Certified Management Accountants (CMAs), have now adopted the designation Chartered Professional Accountant (CPA), making the term "chartered accountant" obsolete.
In the Czech Republic, chartered accountants are generally members of Institute of Chartered Accountants of the Czech Republic and use the designatory letters CA (chartered accountant) or CAE (chartered accountant expert). Chartered accountants may also be members of the Chamber of the Chartered Accountants.
Under the Mutual Recognition Directive, EEA and Swiss nationals holding a professional qualification can become members of the equivalent bodies in another member state. They must, however, pass an aptitude test in understanding local conditions (which for accountants will include local tax and company law variations).
The (( local title is, however, not ))available for use if the professional does not choose to join the local professional body. For example, a holder of the French expert comptable qualification could practise as an accountant in England without taking a local test but could only describe him or herself as "expert-comptable (France)" not "chartered accountant". Within the EEA, only the UK and Ireland have bodies that issue the chartered accountant title.
In India, chartered accountants are regulated by the Institute of Chartered Accountants of India (ICAI) which was established by the Chartered Accountants Act, 1949. Prior to 1949, restricted state auditors were registered with the respective princely states and British provincial state governments. Associate members of the ICAI are entitled to add the prefix 'CA' to their names. Members who are in full-time practice, and have completed five years of practice, can add 'FCA' as a prefix to their names.
The intermediate examination is divided into two groups of subjects. On clearing the first group of the IPC level, the student has to get training as an articled assistant for three years in a chartered firm. In the third year of training, before taking the final exam, trainees have the option to work in any industry. A comprehensive 100 hours of information technology training and an orientation programme for soft skills development have to be completed before being articled.
For overall development, the student has to undergo two training courses in soft skills and communication, named GMCS I and GMCS II, which usually last for fifteen days each. GMCS-I has to be completed within one year of being articled, while GMCS-II and advanced information technology training have to be completed in the final year of articleship or can be undertaken after the exams.
In Ireland, chartered accountants are generally members of Chartered Accountants Ireland and use the designatory letters ACA or FCA. Chartered accountants may also be members of the Institute of Chartered Accountants in England and Wales or the Institute of Chartered Accountants of Scotland.
In Nepal, the profession of chartered accountancy is regulated by the Institute of Chartered Accountants of Nepal (ICAN) which was established by parliament under the Chartered Accountants Act, 1997.
After completion of three level of examination CAP I, CAP II, and CAP III with three years of article-ship training under a qualified CA, one can get the membership of ICAN and with the COP, one can practice as professional body.
In New Zealand, chartered accountants belong to the Chartered Accountants Australia & New Zealand formerly New Zealand Institute of Chartered Accountants and use the designatory letters CA. Some senior members may be elected fellows and use the letters FCA.
There is also a mid-tier qualification called associate chartered accountant with the designatory letters ACA. Associate chartered accountants are not eligible to hold a certificate of public practice and therefore cannot offer services to the public.
The Institute of Chartered Accountants of Pakistan (ICAP) is the professional body of chartered accountants in Pakistan, established on July 1, 1961 under the Chartered Accountants Ordinance, 1961. ICAP is the sole body and authority in Pakistan which has a mandate to regulate the accounting and auditing profession in the country. It adopts and develops the national auditing standards and develops accounting standards for the Securities and Exchange Commission of Pakistan (SECP). It represents accountants employed in public practice, business and industry, and the public sector. The Institute is a member of the International Federation of Accountants (IFAC), which is the global organization for the accountancy profession.
ICAP has more than 7,000 active members and more than 25,000 students.
The Chartered Accountant of Singapore (CA (Singapore)) title is protected under the Singapore Accountancy Commission (SAC) Act and the Singapore Qualification Programme (Singapore QP), a pathway to obtain the CA (Singapore) designation is owned by the SAC, a statutory body of the Singapore Government. The Institute of Singapore Chartered Accountants (ISCA) is a designated entity in the SAC Act and confers the CA (Singapore) designation on behalf of SAC.
The Singapore QP comprises 3 components, namely: academic base, professional programme and practical experience. To attain the CA (Singapore) designation, Candidates will have to complete 3 years of relevant practical work experience, under the supervision of an Approved Mentor, and with a Training Agreement at an Accredited Training Organisation (ATO) .
The ISCA is also the administrator of the Singapore QP. ISCA works closely with the SAC in raising the profile of the Singapore QP, helping it to attain international recognition, and promote it as the educational pathway of choice for professional accountants.
A milestone agreement affecting thousands of accountants and finance professionals in Singapore was signed by the Institute of Singapore Chartered Accountants (ISCA) and ACCA in 2005.
The two accountancy bodies have signed a Mutual Recognition Agreement (MRA), which enables ISCA members to be full members of ACCA and vice versa, and enjoy the benefits that both organisations can offer. Accountants working in public practice will still have to satisfy additional national requirements.
According to the MRA, only members of ISCA who have completed the ISCA Professional Examination and have satisfied ACCA's practical experience requirement will be eligible for admission into membership of ACCA. Only ACCA members who have completed the final part of the ACCA examinations and have satisfied the requirements on relevant practical experience, pre-admission course and proficiency in Singapore laws as prescribed by ISCA shall be eligible for admission into membership of ISCA.
In South Africa, SAICA (South African Institute of Chartered Accountants) regulates the CA (SA) designation (chartered accountant (South Africa).
To qualify as a CA (SA) one requires a specialised bachelor's degree in accounting, followed by a Certificate in the Theory of Accounting, or CTA; depending on the university, this is offered as a postgraduate honours degree, or as a postgraduate diploma. This formal education is followed by two external exams set by SAICA. The first one being ITC (Initial test of competence) since 2013; previously, Qualifying Exam 1 - QE1) usually written before starting articles and the second being APC (Assessment of professional competence) [APC was written for the first time in Nov 2014 - it used to be called Professional Practice Exam - PPE] usually written at the end of year 2 of articles.
A separate registration is needed for chartered accountants wishing to act as auditors in public practice, namely the RA (Registered Auditor). The RA designation is conferred by IRBA (Independent Regulatory Board For Auditors), (previously known as PAAB (Public Accountants and Auditors Board) in terms of the Auditing Profession Act (AP Act).
Candidates must complete three years of practical experience, working for a registered training office - the Training In Public Practice (TIPP) programme. Articled clerks who switch employers during this period are required to extend their training by six months. The Training Outside Public Practice (TOPP) programme has a financial management focus; TOPP trainees can thus become chartered accountants with a more limited knowledge and experience of auditing than those who undergo the TIPP programme, but with a more extensive financial management and business experience than the TIPP learners.
Chartered accountants who are not registered auditors may not act as or hold out to be auditors in public practice. However, the AP Act does not prohibit non-RAs from using the description 'internal auditor' or 'accountant' or from auditing a not-for-profit club, institution or association if he or she receives no fee for such audit.
In South Africa the Companies Act was replaced, with effect July 2010, to allow companies without a public interest to choose between an audit or an independent review. A review is not an attest function and will be performed by Accountants who are members of bodies that are registered in terms of the Close Corporations Act of 1984, which include SAIBA, CIMA, SAICA, SAIPA and ACCA.
Chartered accountants in Sri Lanka belong to the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) and use the designatory letters ACA. Some senior members of the Institute may be elected Fellows and use the letters FCA.
United Arab Emirates
United Arab Emirates Chartered Accountant (UAECA) designation is awarded to members of Accountants and Auditors Association of United Arab Emirates. Currently ACCA is recognzied as the official Chartered Accountants of UAE, on the honorary basis ACCA members have been given full Chartered Accountancy Status by Auditors and Accountants Association of UAE. They are designated as UAECA
In the UK there are no licence requirements for individuals to describe themselves or to practise as accountants. However, direct registration with the HMRC is required in order to act on behalf of a client. Those who use the description "chartered accountant" must be members of one of the following organisations:
- the Institute of Chartered Accountants in England & Wales (ICAEW) (designatory letters ACA or FCA)
- the Institute of Chartered Accountants of Scotland (ICAS) (designatory letters CA)
- Chartered Accountants Ireland (CAI) (designatory letters ACA or FCA)
- ACCA (Association of chartered certified accountants)
- a recognised equivalent body in another Commonwealth country (designatory letters being CA (name of country) e.g. CA (Canada))
(Although other UK accounting bodies were also formed by Royal Charter, they grant separate designations to their members.)
These Institutes above admit members, who become chartered accountants, only after passing examinations and undergoing a period of relevant work experience. The ICAEW requires that students complete 15 examinations as well as 450 days of relevant work experience. Once admitted, members are expected to comply with ethical guidelines and gain appropriate continuing professional development. Fully qualified members of the ICAEW and CAI earn the designation ACA (Associate Chartered Accountant). After 10 years' membership, members are invited to apply for fellowship of their Institute and earn the designation FCA (fellow chartered accountant).
Chartered accountants who engage in public practice work (i.e. providing services to the public rather than acting as an employee) must gain a "practising certificate" by meeting further requirements such as purchasing adequate insurance and undergoing regular inspections.
Chartered accountants holding practising certificates may also become "Registered Auditors", providing they can demonstrate the necessary professional ability in that area. A Registered Auditor is able to perform statutory financial audits in accordance with the Companies Act 2006.
Further restrictions apply to accountants who work as insolvency practitioners.
List of institutes of chartered accountants
- Bahamas Institute of Chartered Accountants
- Canadian Institute of Chartered Accountants
- Chartered Accountants Australia & New Zealand as a result of merger of New Zealand Institute of Chartered Accountants (NZICA) and the Institute of Chartered Accountants in Australia (ICAA) in 2013
- Chartered Accountants Ireland
- Institute of Chartered Accountants of Barbados
- Institute of Chartered Accountants of Belize
- Institute of Chartered Accountants of Bermuda
- Institute of Chartered Accountants of the Eastern Caribbean
- Institute of Chartered Accountants in England & Wales
- Institute of Chartered Accountants of Ghana
- Institute of Chartered Accountants of Guyana
- Institute of Chartered Accountants of India
- Institute of Chartered Accountants of Jamaica
- Institute of Chartered Accountants of Namibia
- Institute of Chartered Accountants of Nepal
- Institute of Chartered Accountants of Nigeria
- Institute of Chartered Accountants of Pakistan
- Institute of Chartered Accountants of Scotland
- Institute of Chartered Accountants of Sierra Leone
- Institute of Singapore Chartered Accountants
- Institute of Chartered Accountants of Sri Lanka
- Institute of Chartered Accountants of Trinidad and Tobago
- Institute of Chartered Accountants of Zimbabwe
- South African Institute of Chartered Accountants
- Institute of Chartered Accountants of Bangladesh
- Zambia Institute of Chartered Accountants
- Perks, R.W. (1993). Accounting and Society. London: Chapman & Hall. p. 16. ISBN 0-412-47330-5.
- "Life as a CA has many advantages". ICA Scotland. Retrieved 2011-10-06.
- "Why Chartered Accountancy?". CA Ireland. Retrieved 2011-10-06.
- "Where do Chartered Accountants work?". ICA Australia. Retrieved 2011-10-06.
- "Benefits of joining the ICAEW". Retrieved 2011-10-06.
- "About membership and inclusions". ICAA. Retrieved 15 October 2012.
- "Advancement to Fellowship". ICAA. Retrieved 15 October 2012.
- Institute of Chartered Accountants of Bermuda
- , retrieved from on 2014-02-05
- "CA Course (Updated)".
- "www.icai.org". Institute of Chartered Accountants of India. Retrieved 24 July 2016.
- Auditing Profession Act s37(2)
- Auditing Profession Act s41(a)
- Auditing Profession Act s41(3)