The National accounting body of India known as Institute of Chartered Accountants of India (ICAI).It was established on 1 July 1949 under the Chartered Accountants Act, 1949 enacted by the Constituent Assembly of India. Ii works to regulate the profession of Chartered Accountancy in India. ICAI is the only licensing and regulating body for the financial audit and accountancy profession in India. It also recommends the accounting standards to be followed by companies in India to the National Advisory Committee on Accounting Standards (NACAS) and it also decides the accounting standards to be followed by other types of organizations. ICAI is the second largest professional accounting body in the world in terms of membership second only to American Institute of Certified Public Accountants. It issues the Standards on Internal Audit (SIA), Corporate Affairs Standards (CAS) etc. to be followed by practicing Chartered Accountants. It closely works with the Government of India, Reserve Bank of India and the Securities and Exchange Board of India for setting the financial standards in the country.
All the chartered accountants are the Members of ICAI. Only a member of ICAI can be appointed as auditor of an Indian company under the Companies Act, 1956. ICAI has entered into mutual recognition agreements with other professional accounting bodies world-wide for reciprocal membership recognition.
ICAI is one of the founder members of the International Federation of Accountants (IFAC), South Asian Federation of Accountants (SAFA), and Confederation of Asian and Pacific Accountants (CAPA). ICAI was formerly the provisional jurisdiction for XBRL International in India. ICAI helps various government agencies like RBI, SEBI,MCA, CAG, IRDA, etc. in policy formulation.