History of Chartered Accountants: Origin & Evolution

By IIC Lakshya

24 Jan 2026

History of Chartered Accountants: Origin & Evolution

If you are working as a Chartered Accountant or want to become one, you can explore its origin and evolution. As a working professional, CAs has a lot of responsibilities in the market leading to financial and accounting growth. Furthermore, let’s explore the significance, goals, and impacts of the CAs.

Chartered Accountant: Meaning & Significance

The Chartered Accountant (CA) is a financial certification specializing in accounting, taxation, financial management, and auditing. CA is a highly qualified designation for a finance professional who represents professional ethics, technical expertise, and integrity. Read the ultimate guide to CA course if you are preparing for the examination.

Chartered Accountants play a significant role in the economic development, financial stability & transparency, and regulatory compliance.
The certification is globally recognized and respected, but in India, it is highly established.

Origins in Britain

The origin of CA is in Britain during the 19th century. The industrial revolution and the necessity of reliable financial guidelines led to the development of the Chartered Accountancy profession. The Royal Charter was granted to the Institute of Chartered Accountants of Scotland in 1854, leading to formal recognition of the profession.

A significant milestone in the development and recognition of the CA profession, the Charter helped lay a foundation for CA practices. The ethical guidelines, professional accounting standards, and structured training of the CA were further developed. It started shaping modern accounting worldwide.

Role of Chartered Accountancy in India

Chartered Accountants have played a significant role in the nation-building and economic development in India. So, the profession was first introduced in India during the British Rule, as the firms and organizations that were functioning in India needed auditing. It was integrated through the Companies Act of 1913.

In the pre-independence era, there were accountants, both foreign and Indian, who contributed to the audit practices, financial planning, and business governance. But later, after gaining independence in 1947, the Institute of Chartered Accountants of India (ICAI) was established in 1949.

This led to corporate governance, accountability, and the strengthening of financial regulation, formalizing the profession across the country. The International Chartered Accountants of India (ICAI) is not just about integrating accounting standards.

It is also about national development, setting international standards, and establishing financial integrity. Read will AI replace accountants, chartered accountants, and management accountants because it will give you an idea about the significance of CAs.

Financing the Movement

The Chartered Accountants were one of the most important sources of economic growth and financial advisory services. They actively encouraged everyone to become economically self-reliant and organize funding mechanisms.

The CAs enable businesses and individuals to manage their funding effectively and ensure ethical practices, leading to trust establishment and sustainability. Careers in commerce, like ACCA is a broader reflection of the CA on a global scale.

Publication of Literature

With the growth of the Chartered Accountancy profession, the publication of accounting literature, educational materials, and journals also increases. With the publication of financial resources, the financial knowledge spread, and more organizations started adopting standardized accounting practices. It also promotes professional accounting training.

Sustaining Organizations

With the integration of auditing and accounting practices, Chartered Accountants help in building a sustainable professional environment for commercial organizations. The expertise in auditing, compliance, and governance led to organizational accountability and stability. If you want to become a CMA in India, learning the processes of Chartered Accountancy will enhance your skills.

Safeguarding Assets

It is a core responsibility of the Chartered Accountants to safeguard the assets. It is through ensuring proper financial reporting and management, implementing internal controls, and conducting audits that CAs protect organizational resources from any misuse or fraud.

Supporting Economic Boycotts

In the pre-independence era, boycotts related to politics and economics were quite common in colonial India. It was the CAs who supported self-sufficiency initiatives and economic boycotts by enhancing local resources, managing indigenous enterprise, and promoting small industries. This has led to economic growth and empowerment. Read about some of the prominent chartered accountants in India who Shaped the Financial Landscape.

Global Recognition

Over time, the CA designation has gained global importance and respect. Professionals have insights into financial statements and reporting, which leads them to work across borders in financial institutions, audit firms, and multinational corporations.

Goals and Impacts of CA

There are several goals of the CA designation, reflects the evolution of the economy and the way accounting is necessary for businesses. Read about the CA Exam dates 2026 to stay updated. Below are some of the significant impacts and changes that the CA designation has brought on for nations and companies globally.

Chartered Accountants have contributed to strengthening financial systems by promoting ethical practices.
The CAs contribute to the economic growth of the market by supporting small businesses
Transparency and accountability have been integrated with the CA practices

Wrapping Up!

In conclusion, Chartered Accountants have a vast history of struggle, growth, modern finance strategies, and business governance. With its origin from Britain, CA as a professional has grown up to become an influential position in India. Additionally, it has integrated financial excellence, professionalism, trust, and integrity in the financial services in the market.

Frequently Asked Questions on the History of Chartered Accountants

Who introduced CA in India?

The Institute of Chartered Accountants of India (ICAI) regulates Chartered Accountants. The Chartered Accountants Act, 1949, establishes the ICAI.

Who was the first CA of India?

The first CA of India is Shri Gopaldas Padamsey Kapadia, who was awarded the first membership certificate by ICAI on 9th June, 1950. He was also the first president of the Institute of Chartered Accountants of India (ICAI) and went on to serve for three years.

Who is the father of CA?

Shri Kalyan Subramani Aiyar is known as the father of the CA accounting profession in India. He was recognized as a professional practicing CA in Calicut in 1897.

What is the slogan of CA?

The ICAI's slogan or motto, Ya Aeshu Suptaeshu Jagruti (Sanskrit), is significantly reflective of the CA certification. It means “a person who is awake in those that sleep”.