Chartered accountants 1961

CHARATERED ACCOUNTANTS
ORDINANCE, 1961 & ICAP
Preparedby:
Hina Shaheen
Faizan AKhtar

INTRODUCTION
Institute of Chartered Accountants of Pakistan (ICAP) is a
professional Accountancy body in Pakistan. As of July 2010, it had
7,200 members working in and outside Pakistan. The institute was
established on July 1, 1961 to regulate the profession of accountancy
in Pakistan. It is a statutory autonomous body established under the
Chartered Accountants Ordinance 1961.
The head office of the institute is in Clifton, Karachi. Where it has
its own premises. The Institute has regional offices in different cities.
Lahore
Islamabad
Peshawar
Multan
Faisalabad

Vision
Mission
The profession of Chartered Accountants in Pakistan should be
the benchmark of professional excellence upholding the
principles of integrity, transparency and accountability.
Achieve excellence in professional competence, add value to
businesses and economy, safeguard public interest ensure ethical
practices and good corporate governance while recognizing the
needs of globalization.

Management of Institute
 Secretariat
 Examinations
 Education & Training
 Quality Assurance Department
 Technical Services
 Finance
 Information Technology
 Internal Audit
 Marketing
 Human Resource & Administration
Management and day to day running of the Institute is the
responsibility of the Secretary who is appointed by the
Council of the Institute. The following departments assist
the Secretary to accomplish the above Functions:

This scheme caters to the students who want to join the
profession after completing their 12 year education,
namely, Higher School Certificate, A Level and other
equivalent qualifications.
Higher Secondary School Certificate with minimum 50%
marks. ‘A’ Levels with minimum two passes, or
equivalent qualification. Graduates with minimum 45%
marks.
Requirement for CA

1. CA is depends upon 6 Modules and 20 papers.
2. Each module depends upon 6th Months
3. But The last two modules E & F constitute CA
FINAL. The total duration of CA Final can be 3 or 3.5
years.
Road Map for CA

Career in chartered accountancy is one of the highest
paid professions in the country.
a) Field: Chartered Accountancy
b) Expected salary at entry: 60,000 - 70,000*
c) After five Years: 100,000 - 180,000*
Chartered Accountant Salary in Pakistan

Chartered accountants offer financial advice, audit
accounts and provide trustworthy information about
financial records. This might involve financial
reporting, taxation, auditing, forensic accounting,
corporate finance, business recovery and insolvency,
or accounting systems and processes.
 Continuous management of financial systems and budgets.
 Providing financial advice.
 Maintaining accounting records and preparing accounts and
management information for small businesses.
 Detecting and preventing fraud (forensic accounting).
 Advising on tax and treasury issues.
 Preparing financial statements, including monthly and annual
accounts.
 Arranging financial management reports, including financial
planning and forecasting.
Job description

 Associate: means an associate member of the
Institute.
 Chartered accountant: mean a person who is a
member of the Institute.
 Council: means the Council of the Institute
 Fellow: means a fellow member of the Institute
 Institute: means the Institute of Chartered
Accountants of Pakistan constituted under this
Ordinance.
Definitions

Definitions
 Register: means the Register of the Members of the
Institute maintained under this Ordinance.
 Year: means the period commencing on the first day
of July of any year and ending on the thirtieth day of
June of the succeeding year.
 Student: means a person who is or has been trainee
under a training contract with a member of the
Institute.

CHAPTER-2
The Institute of Chartered
Accountants of Pakistan

Associates and Follows
How will become Associate.
How will become Follows.
 If his Name enter in register.
 After becoming member use the letter of ACA.
 An Associate member has 5 year practices.
 Associate member of institute has period not less than
ten year.
 Payment of Prescribed fee.
 After becoming Follows use the letter FCA.
The members of the institute shall be of two class
designated respectively as associate and Fellows.

Certificate of Practices
Certificate is must be necessary for Practices
 No member can practice as an auditor of public
company if he has obtained from the council a
certificate of practice.
 Every such member shall pay such annual fee for this
certificate as may be prescribed and such fee shall
be due on the first day of July in each year.

Disabilities:
A Person shall not be entitled to have his name entered in
or borne on the register if he is.
 Less than 20 year old
 Unsound mind
 Insolvent
 Misconduct

CHAPTER-3
Council of the Institute

Function of the council
 Maintenance of the status and standard of
professional qualifications of the members of the
Institute.
 The levy and collection of fees from members.
 Remove the name of members.
 The maintenance of a library and publication of
books and periodicals relating to accountancy.
There shall be a Council of the Institute for the management of the
affairs of the Institute.

 The exercise of such disciplinary power over the
members and servants of the Institute as may be
prescribed.
 Prescribing of qualifications for entry in the Register.
 Regulation of the engagement and training of
students.
 Examination of candidates for enrolment and the
prescribing of fees.

 The granting or refusal of certificates of practice
under this Ordinance.
 The maintenance and publication of a register of
persons qualified to practice as chartered
accountants.
 Recognition of the foreign qualifications and
training for purposes of enrolment.
 Finance of institution

 Appoint a full-time Secretary
 Appoint such other officers and servants.
 fix salaries, fees, allowances and other conditions of
service of the officers and servants of the Council.
 Fix the allowances of the President, Vice-President
or Vice-Presidents and other members of the
Council and members of its Committees.

Duration and dissolution of Council
 The duration of the Council constituted under this
ordinance shall be four years.
 Duration of council is start from 1st meeting.
 Provided that the duration of the Council existing
immediately before the commencement of the
Chartered Accountants (Amendment) Ordinance,
1983, shall be three years.
 The expiry of the duration of the Council it shall
continue to function until a new Council is
constituted in accordance with the provisions of this
Ordinance.

Registration Process of Members
The Council shall maintain in the prescribed manner a
register of the members of the institute.
 Full name
 Date of Birth
 Domicile
 Residential and Professional address
 Member Entry Date
 Member Qualification
 Certificate of Practice
 Any other Requirement
 Pay Annual Membership Fee

Disappointment of Members
The council , may remove from the register the name
of an member of the institute.
 Who is dead.
 If any request has been received.
 If he not paid any prescribed fee.
 Any Disabilities mention in Section-8

Appeal and Revision
Any member of the Institute aggrieved by an order of the
council imposing on him any of the penalties referred to in
section 20D may, within sixty days of the date of communication
of such order to him, prefer an appeal to the High Court.
 High court may, on its own motion or on an
application made to it.
 High Court Call for the record.
 confirm, modify or set aside the order.
 Impose any penalty or set ‘aside, reduce, confirm or
enhance.
 Remit the case to the Council for such further inquiry.
 Pass such other order as it may deem fit.

Penalties are impose in different case under as following.
 Any person who not being a member of the Institute.
 If any person represents that he is a member of the
Institute.
 If any person uses the designation Chartered
Accountant.
 Being a member of the Institute, but not having a
certificate of Practice represent as Chartered
Accountant.
 Unqualified person not to sign documents.
PENALTIES:

Fine and Punishment:
First Conviction:
1 thousand rupee fine.
Second Conviction:
6th month Imprisonment and 5 thousand rupee fine.
PENALTIES:

Amendments in chartered accountants ordinance, 1961
 Professional Standards compliance more effective
by empowering the Council.
 The Institute to call for information and records in
cases of Quality Assurance work.
 Improvement in Governance of the Institute .
 Some aspects of the profession with International
Best Practices.
 Redundancies and changes in ancillary matters.
AMENDMENTS-2011

Amendments in chartered accountants ordinance, 1961
 Empower the council to make final decision instead
of referring matters to the High Court.
 Bring changes in composition of the Council.
 Allow members of ICAP to charge contingent fee.
 Enhance penalties for professional misconduct
infringements.
 Allow advertising and soliciting of work within
bounds.
AMENDMENTS-2011

Chartered accountants 1961

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Chartered accountants 1961