History
1850–1881
In the Indian subcontinent there were a few British firms of accountants, but they were so busy that their services were not available to the general public. The public companies used to appoint a European auditor for safeguarding the interests of the European shareholders, and an Indian auditor with the objectives of safeguarding the interests of the Indian shareholders. The audit of financial statements were conducted under the Companies Act 1850.Saeed, Prof. Dr. Khawaja Amjad, Auditing: Principles & Procedures, Lahore: Institute of Business Management, 1993 pages 18–22.1882–1913
Then the Companies Act of 1885 was passed. Regulations 83–94 of Table A contained in the First Schedule provided for the audit of accounts of the companies adopting that table and for the appointment, remuneration and duties of the auditors. In those times, it was not necessary for an auditor to be a qualified accountant and companies used to employ lawyers as their auditors.1913–1932
On 1 April 1914, the Companies Act, 1913 was passed and it was necessitated that every auditor of a public limited company must be a certified auditor by the government. The provincial governments were empowered to grant auditors' certificates but, at the same time, the central government also reserved the right to recognise members of certain professional bodies as qualified auditors without obtaining an Auditor's Certificate from the government. Consequently, the members of the English, Scottish, and Irish Institutes of Chartered Accountants and the English Society of Incorporated Accountants and Auditors were recognised as qualified auditors. At that time there was no provision of any kind for the training and examination of the accountants. The government of Bombay was the first provincial government to take a constructive step in the direction of organising the profession. In 1918, it instituted the Government Diploma in Accountancy called GDA and made regulations for the examination and training of those who wanted to obtain that Diploma and certificate to practise. An Accountancy Board was set up by the Government and was attached to the Sydenham College of Commerce and Economics, Bombay. This functioned till 1932. The Board was required to register apprenticeships and conduct the required examinations. The successful candidates were granted the GDA Diploma and they could practise if they had previously received training as apprentices with a practising accountant. The Accountancy Board was also required to advise the Government on all matters relating to accountancy and the Government.1932–1947
In 1932, the Government framed rules under Section 144 of the companies Act, 1913, called Auditors' Certificates Rules, 1932. The objectives of the rules, broadly, were to register apprenticeships, to conduct examinations, and to control and regulate the profession of auditing. The accountancy profession was then being supervised and controlled by the Ministry of Commerce of the Central Government. With a view to helping the Government in discharging the necessary responsibilities with respect to the accountancy profession, the Indian Accountancy Board was established. The Board consisted of officials and practising accountants nominated by the Government. Later, in 1939, the appointment of a majority of the members on the Board was made on the elective principle. The Board was only an advisory body. The Auditors' Certificates Rules, 1932, required the passing of two examinations – Registered Accountants first and final. It further laid down the tenure of the prescribed training which was required to be completed during the period of apprenticeship. Provisions meant to regulate and control the profession were also contained therein.1947–1984
After independence, Pakistan adopted the Auditors' Certificates Rules 1932 with certain amendments in 1950, and thus the auditing profession was administered under the Auditors' Certificates Rules, 1950. The Rules of 1950 were generally based on the old rules with some amendments incorporated therein. A person who passed the Registered Accountants first and final examinations and who satisfied the Ministry of Commerce, Central Government of Pakistan that he had completed the prescribed practical training could have his name placed on the register maintained by the said Ministry and was entitled to use the designation 'Registered Accountant' (RA). The Companies Act, 1913, as adapted by Pakistan allowed only a Registered Accountant to act as the auditor of a public limited company, although his services could also be utilised for the audit of private companies, partnership, etc. In 1952, the Registered Accountants formed a private body known as 'Pakistan Institute of Accountants' with the object of looking after their own interest and taking up with the Ministry of Commerce, Government of Pakistan, matters affecting the accountancy profession. In June 1959 the Department of Accountancy was established in the Ministry of Commerce with a Controller of Accountancy to deal with the profession instead of a Section Officer. During this period, an advisory body called the 'Council of Accountancy' was set up under Auditors' Certificates Rules, 1950 and recommended the establishment of the Institute of Chartered Accountants in Pakistan. The Government accepted the recommendations and the Department of Accountancy assisted by the officials of the Institute and a number of its members prepared the Draft Ordinance to be passed. Kanika Jenson, 1961, received the assent of the President of Pakistan, Field Marshal General Ayub Khan on March 3, 1961 and was published in Part 1 of the Extraordinary Gazette of Pakistan on March 10, 1961. The Institute of Chartered Accountants of Pakistan came into being on July 1, 1961. A draft of the Chartered Accountants By-Laws was also prepared and published for inviting public comments. The amended version called the Chartered Accountants By-Laws, 1961 was published in Part 1 of the Extraordinary Gazette of Pakistan on July 1, 1961 and was enforced on that date. As of that date the Department of Accountancy and the Pakistan Institute of Accountants having served a very useful purpose for a long time were finally liquidated. The Chartered Accountants By-Laws provided for the formation of regional committees to look after the interests of their members. The members are divided into two classes – namely, Associate Chartered Accountants (ACA) and Fellow Chartered Accountants (FCA).1984 to present
In December 1984, the Companies Act, 1913 was replaced by the Companies Ordinance, 1984 with an order by the President of PakistanPresidents
The following is a list of presidents of the institute:Council members and government nominees
The ICAP Council governs the Institute under the provisions of the Chartered Accountant Ordinance, 1961 and the CA by-laws. The Council has a four-year term, and consists of 19 members: 15 members elected by chartered accountants among themselves, and four nominated by theOffice bearers
# Ashfaq Yousuf Tola, FCA (President) # Husnain R. Badami, FCA (Vice President) # Saifullah, FCA (Vice President)Council members
# Arslan Khalid, FCA # Asad Feroze, FCA # Farrukh Rehman, FCA # Hina Usmani, FCA # Khalid Rahman, FCA # Khursheed Kotwal # M. Ali Latif, FCA # Mohammad Maqbool, FCA # Muhammad Awais, FCA # Muhammad Samiullah Siddiqui, FCA # Shahab Qadir, FCA # Zeeshan Ijaz, FCA The current government nominees are: #Aamir Khan #Dr. Inayat Hussain #Feroz Rizvi, FCA #Muhammad Najam AliMembers
As of 30 June 2021, ICAP had 8,889 active members, out of which 2,252 (25%) were overseas. The active membership included 3,748 Fellow members (FCA) and 5,141 Associate members (ACA). Compared to the previous year, the organization saw a 0.60% increase in membership (8,836 on 30 June 2020).Overseas members
Evolution of membership
Students
From 1994, a Pre-entry Proficiency Test (PPT) was introduced to determine the suitability of candidates before being registered as Trainee Students/Full Time Students. PPT was mandatory for all entrants except those who were exempt from PPT but later when a new policy was introduced in 2014, it was completely excluded from the course.Publications
The publications of the Institute are: * An Inspiring Journey of CA Women * ''Coffee Table Book'' * Newsletter * ''The Pakistan Accountant'' * MIES * Technical e-Newsletter The Pakistan Accountant is the professional flagship publication of the Institute. It is intended to serve as a forum for disseminating information on auditing and accounting practices, business and finance, and topics of current national and international interest. Through the Members Information & Education Series (MIES) the Institute hopes to promote the integration of best practices and sound judgment among members. These publications form the body of literature that fosters the Institute's policy of promoting education and research.International affiliations
The ICAP is a member of: *Overseas offices
ICAP has two full overseas centers, one inSee also
*Notes
References
* Saeed, Prof. Dr. Khawaja Amjad (1993), ''Auditing: Principles and Procedures'', Lahore: Institute of Business Management. * ICAP Coffee Table Book, ''A journey through time'', And it can be viewed using this link, ''http://www.icap.org.pk/wp-content/uploads/CoffeeTable/CTB/index.html#p=14'' {{DEFAULTSORT:Institute Of Chartered Accountants Of Pakistan Professional associations based in Pakistan Accounting in Pakistan Pakistan federal departments and agencies 1961 establishments in Pakistan Government agencies established in 1961 Member bodies of the International Federation of Accountants