Institute of Chartered Accountants in England & Wales
Encyclopedia
The Institute of Chartered Accountants in England and Wales (ICAEW) was established by a Royal Charter in 1880. It has over 130,000 members. Over 15,000 of these members live and work outside the UK. The Institute also has some 9,000 students.
The Institute is a member of the Consultative Committee of Accountancy Bodies
(CCAB), formed in 1974 by the major accountancy professional bodies in the UK and Ireland. The fragmented nature of the accountancy profession in the UK
is in part due to the absence of any legal requirement for an accountant to be a member of one of the many Institutes, as the term accountant does not have legal protection. However, a person must belong to the ICAEW, ICAS or ICAI to hold themselves out as a chartered accountant
in the UK (although there are other chartered bodies of British qualified accountants
).
The ICAEW has two offices in the UK; the main one is in Moorgate
, London
and the other in Central Milton Keynes
, in the newly built Hub:MK complex. In 2009 it also opened regional offices in Singapore
and Dubai
to support its members in Asia, followed by Beijing
in 2011.
and large scale manufacturing and logistic in Victorian
Britain
a demand was created for more technically proficient accountants to deal with the increasing complexity of accounting transactions dealing with depreciation of assets, inventory valuation and the Companies legislation being introduced.
To improve their status and combat criticism of low standards, accountants in the cities of Britain formed professional bodies. The ICAEW was formed from the five of these associations that existed in England prior to its establishment by Royal Charter
in May 1880.
The Institute headquarters, Chartered Accountants' Hall, in the City of London, was designed in the Italian Renaissance style by John Belcher
in 1890. It was built by Colls & Sons
. It is widely regarded as one of the finest examples of Victorian Baroque architecture.
In 1948, the institute received a Supplemental Charter.
In 1957 the ICAEW merged with the Society of Incorporated Accountants (founded in 1885 as the Society of Incorporated Accountants and Auditors).
(CIMA) and the Chartered Institute of Public Finance and Accountancy
(CIPFA). However, this project proved unsuccessful. The Institute also announced at this time that it was considering dropping the reference to England and Wales in its title to become the Institute of Chartered Accountants. However, this plan was also withdrawn following objections from the Institute of Chartered Accountants of Scotland
.
The Institute introduced a new syllabus in 2007. In order to make it more appealing to prospective students the policy of time-barring students has been removed and the mandatory examinations will become more flexible based on a modular structure. In addition to paper based assessments, there are now computer based assessments of objective test questions (multiple choice).
Members of equivalent bodies in other European Economic Area
countries and Switzerland
may also be admitted to membership after passing an aptitude test, provided they are a citizen of an EEA
state or Switzerland
.
The Institute has mutual recognition agreements in place with:
ICAEW members may be admitted to full membership of the above institutions after passing an aptitude test or subject to other specific requirements.
Starting from 8 January 2010, ICAEW introduced a new "Pathways to Membership" programme whereby it offers the ACA designation on passing its Examination of Experience and sponsorship by ICAEW member or under ICAEW's ATE training environment, to members (qualified through normal examination and training route) of the following accounting institutes:
However, AICPA and MICPA members who join the ICAEW under the Pathways to Membership scheme must maintain their home body membership.
ICAEW has signed Memoranda of Understanding (MOU) with accounting bodies in overseas countries. These bodies are The Institute of Chartered Accountants of Bangladesh
(ICAB), Institute of Chartered Accountants of India
(ICAI), Institute of Chartered Accountants of Pakistan
(ICAP) and Institute of Certified Public Accountants of Singapore (ICPAS). There is also a joint scheme in place to enable members of the Chinese Institute of Certified Public Accountants (CICPA)
and the Hong Kong Institute of Certified Public Accountants
to qualify as ACA with ICAEW.
ICAEW is an affiliate of the Institute of Chartered Accountants of the Caribbean
.
The full ACA training programme is available in Cyprus, Greece, Malaysia, Mauritius, Romania and the Gulf states
.
Fellowship is intended to designate those who have achieved a higher level of professional experience. It is awarded, on application, to those members who have attained at least ten years of membership and who, at the date of application, have complied with the Institute's requirements on continuing professional development in the preceding three years and have no outstanding disciplinary charges against them.
The Tax Faculty was the first to be formed in 1990; The monthly TAXline publication started in 1991, and an annual Technical
Review (now Tax Planning) was first published in October 1992. The Tax Faculty joined the Confédération Fiscale Européenne
(CFE) in 2001.
of finance directors.
The Institute is a member of the Consultative Committee of Accountancy Bodies
Consultative Committee of Accountancy Bodies
The Consultative Committee of Accountancy Bodies is an umbrella group for the chartered professional bodies of British qualified accountants.The CCAB was formed in 1974 and has six members:* Association of Chartered Certified Accountants...
(CCAB), formed in 1974 by the major accountancy professional bodies in the UK and Ireland. The fragmented nature of the accountancy profession in the UK
British qualified accountants
British qualified accountants are full voting members of United Kingdom professional bodies that evaluate individual experience and test competencies for accountants....
is in part due to the absence of any legal requirement for an accountant to be a member of one of the many Institutes, as the term accountant does not have legal protection. However, a person must belong to the ICAEW, ICAS or ICAI to hold themselves out as a chartered accountant
Chartered Accountant
Chartered Accountants were the first accountants to form a professional body, initially established in Britain in 1854. The Edinburgh Society of Accountants , the Glasgow Institute of Accountants and Actuaries and the Aberdeen Society of Accountants were each granted a royal charter almost from...
in the UK (although there are other chartered bodies of British qualified accountants
British qualified accountants
British qualified accountants are full voting members of United Kingdom professional bodies that evaluate individual experience and test competencies for accountants....
).
The ICAEW has two offices in the UK; the main one is in Moorgate
Moorgate
Moorgate was a postern in the London Wall originally built by the Romans. It was turned into a gate in the 15th century. Though the gate was demolished in 1762, the name survives as a major street in the City of London...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and the other in Central Milton Keynes
Central Milton Keynes
Central Milton Keynes is the central business district of Milton Keynes, Buckinghamshire, England and a civil parish in its own right.The district is approximately 2.5 km long by 1 km wide and occupies some of the highest land in Milton Keynes...
, in the newly built Hub:MK complex. In 2009 it also opened regional offices in Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
and Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
to support its members in Asia, followed by Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
in 2011.
Early years
Until the mid-nineteenth century the role of accountants in England and Wales was restricted to that of bookkeepers in that accountants merely maintained records of what other business people had purchased and sold. However, with the growth of the limited liability companyLimited liability company
A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...
and large scale manufacturing and logistic in Victorian
Victorian era
The Victorian era of British history was the period of Queen Victoria's reign from 20 June 1837 until her death on 22 January 1901. It was a long period of peace, prosperity, refined sensibilities and national self-confidence...
Britain
United Kingdom of Great Britain and Ireland
The United Kingdom of Great Britain and Ireland was the formal name of the United Kingdom during the period when what is now the Republic of Ireland formed a part of it....
a demand was created for more technically proficient accountants to deal with the increasing complexity of accounting transactions dealing with depreciation of assets, inventory valuation and the Companies legislation being introduced.
To improve their status and combat criticism of low standards, accountants in the cities of Britain formed professional bodies. The ICAEW was formed from the five of these associations that existed in England prior to its establishment by Royal Charter
Royal Charter
A royal charter is a formal document issued by a monarch as letters patent, granting a right or power to an individual or a body corporate. They were, and are still, used to establish significant organizations such as cities or universities. Charters should be distinguished from warrants and...
in May 1880.
- The Incorporated Society of Liverpool Accountants, formed in January 1870;
- The Institute of Accountants in London was formed in November 1870, comprising 37 members under the leadership of William Quilter. In 1871, standards for membership were established with new members having to show knowledge and aptitude through successfully passing an oral examination. Initially the London Institute restricted its membership to that city, but as other institutes were established elsewhere (for example, in ManchesterManchesterManchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
and SheffieldSheffieldSheffield is a city and metropolitan borough of South Yorkshire, England. Its name derives from the River Sheaf, which runs through the city. Historically a part of the West Riding of Yorkshire, and with some of its southern suburbs annexed from Derbyshire, the city has grown from its largely...
) it was decided to remove this restriction and as such in 1872 it simply became known as the Institute of Accountants to reflect its new national coverage; - The Manchester Institute of Accountants, formed in February 1871;
- The Society of Accountants in England (1872);
- The Sheffield Institute of Accountants (1877).
The Institute headquarters, Chartered Accountants' Hall, in the City of London, was designed in the Italian Renaissance style by John Belcher
John Belcher (architect)
John Belcher was an English architect.Belcher was born in Southwark on 10 July 1841, London. His father of the same name was an established architect. The son was articled with his father, spending two years in France from 1862 where he studied contemporary architecture...
in 1890. It was built by Colls & Sons
Trollope & Colls
Trollope & Colls was once one of the United Kingdom's largest construction companies.-History:The Company was formed out of the merger of George Trollope & Sons and Colls & Sons .The merged firm started to specialise in civil engineering and during World War...
. It is widely regarded as one of the finest examples of Victorian Baroque architecture.
In 1948, the institute received a Supplemental Charter.
In 1957 the ICAEW merged with the Society of Incorporated Accountants (founded in 1885 as the Society of Incorporated Accountants and Auditors).
Recent developments
In 2005 the ICAEW sought to merge with the Chartered Institute of Management AccountantsChartered Institute of Management Accountants
The Chartered Institute of Management Accountants is a United Kingdom-based professional body offering training and qualification in management accountancy and related subjects, focused on accounting for business; together with ongoing support for members.CIMA is one of a number of professional...
(CIMA) and the Chartered Institute of Public Finance and Accountancy
Chartered Institute of Public Finance and Accountancy
The Chartered Institute of Public Finance and Accountancy is a professional institute for accountants working in the public services.CIPFA has 14,000 members who work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money...
(CIPFA). However, this project proved unsuccessful. The Institute also announced at this time that it was considering dropping the reference to England and Wales in its title to become the Institute of Chartered Accountants. However, this plan was also withdrawn following objections from the Institute of Chartered Accountants of Scotland
Institute of Chartered Accountants of Scotland
The Institute of Chartered Accountants of Scotland is the Scottish professional body of Chartered Accountants . It is a regulator, educator and influencer.ICAS act as a thought leader and voice of the professional business community...
.
The Institute introduced a new syllabus in 2007. In order to make it more appealing to prospective students the policy of time-barring students has been removed and the mandatory examinations will become more flexible based on a modular structure. In addition to paper based assessments, there are now computer based assessments of objective test questions (multiple choice).
Admission to membership
To be admitted to membership of the ICAEW, applicants must generally complete 450 days of relevant work experience (training) and pass a series of examinations. The work experience lasts between three and five years and must be with an employer or employers approved by the Institute for training. The examinations are in two stages, professional stage (twelve papers) and advanced stage (two papers and a case study, which must be taken in the final year of training).Members of equivalent bodies in other European Economic Area
European Economic Area
The European Economic Area was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association and the European Community, later the European Union . Specifically, it allows Iceland, Liechtenstein and Norway to participate in the EU's Internal...
countries and Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
may also be admitted to membership after passing an aptitude test, provided they are a citizen of an EEA
European Economic Area
The European Economic Area was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association and the European Community, later the European Union . Specifically, it allows Iceland, Liechtenstein and Norway to participate in the EU's Internal...
state or Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
.
The Institute has mutual recognition agreements in place with:
- Institute of Chartered Accountants of AustraliaInstitute of Chartered Accountants of AustraliaThe Institute of Chartered Accountants in Australia is the professional accounting body representing Chartered Accountants in Australia. It has over 50,000 members and has some 12,000 students. It is a founding member of the Global Accounting Alliance .-History:The Institute of Chartered...
- Institute of Chartered Accountants of BangladeshInstitute of Chartered Accountants of BangladeshThe Institute of Chartered Accountants of Bangladesh is the national professional accountancy body in Bangladesh. It is the sole organisation in the Bangladesh with the right to award the Chartered Accountant designation....
- Institute of Chartered Accountants in CanadaCanadian Institute of Chartered AccountantsThe Canadian Institute of Chartered Accountants was incorporated by a Private Act of the Canadian Parliament in 1902. This Act, now known as the Canadian Institute of Chartered Accountants Act, was last amended in 1990 to reflect the CICA’s current mandate and powers.Working in collaboration with...
- Institute of Certified Public Accountants in Hong KongHong Kong Institute of Certified Public AccountantsThe Hong Kong Institute of Certified Public Accountants is the professional accounting body of Hong Kong.Its main responsibilities are:*Registration and regulation of profession accountants in Hong Kong....
- Institute of Chartered Accountants of IndiaInstitute of Chartered Accountants of IndiaThe Institute of Chartered Accountants of India is a national professional accounting body of India. It was established on 1 July 1949 as a body corporate under the Chartered Accountants Act, 1949 enacted by the Constituent Assembly of India to regulate the profession of Chartered Accountancy in...
- Institute of Chartered Accountants in IrelandInstitute of Chartered Accountants in IrelandMembers of the Institute use the designatory letters ACA. Senior members may be elected Fellows and use the designatory letters FCA....
- Institute of Chartered Accountants in New ZealandNew Zealand Institute of Chartered AccountantsThe New Zealand Institute of Chartered Accountants is the operating name for the Institute of Chartered Accountants of New Zealand. The Institute represents over 32,000 members in New Zealand and overseas...
- Institute of Chartered Accountants of PakistanInstitute of Chartered Accountants of PakistanThe Institute of Chartered Accountants of Pakistan is a professional accountancy body in Pakistan. , it had 5,078 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...
- Institute of Chartered Accountants of ScotlandInstitute of Chartered Accountants of ScotlandThe Institute of Chartered Accountants of Scotland is the Scottish professional body of Chartered Accountants . It is a regulator, educator and influencer.ICAS act as a thought leader and voice of the professional business community...
- Institute of Chartered Accountants in South AfricaSouth African Institute of Chartered AccountantsThe South African Institute of Chartered Accountants , South Africa’s pre-eminent accountancy body, is widely recognized as one of the world’s accounting institutes....
- Institute of Chartered Accountants of ZimbabweInstitute of Chartered Accountants of ZimbabweThe Institute of Chartered Accountants of Zimbabwe is a professional accountancy body in Zimbabwe. It is the sole organization in Zimbabwe with the right to award the Chartered Accountant designation....
ICAEW members may be admitted to full membership of the above institutions after passing an aptitude test or subject to other specific requirements.
Starting from 8 January 2010, ICAEW introduced a new "Pathways to Membership" programme whereby it offers the ACA designation on passing its Examination of Experience and sponsorship by ICAEW member or under ICAEW's ATE training environment, to members (qualified through normal examination and training route) of the following accounting institutes:
- American Institute of Certified Public AccountantsAmerican Institute of Certified Public AccountantsFounded in 1887, the American Institute of Certified Public Accountants is the national professional organization of Certified Public Accountants in the United States, with more than 370,000 CPA members in 128 countries in business and industry, public practice, government, education, student...
(AICPA) - Association of Chartered Certified AccountantsAssociation of Chartered Certified AccountantsFounded in 1904, the Association of Chartered Certified Accountants is the global body for professional accountants offering the Chartered Certified Accountant qualification . it is one of the largest and fastest-growing global accountancy bodies with 147,000 members and 424,000 students in 170...
(ACCA) - Chartered Institute of Management AccountantsChartered Institute of Management AccountantsThe Chartered Institute of Management Accountants is a United Kingdom-based professional body offering training and qualification in management accountancy and related subjects, focused on accounting for business; together with ongoing support for members.CIMA is one of a number of professional...
(CIMA) - Chartered Institute of Public Finance and AccountancyChartered Institute of Public Finance and AccountancyThe Chartered Institute of Public Finance and Accountancy is a professional institute for accountants working in the public services.CIPFA has 14,000 members who work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money...
(CIPFA) - CPA AustraliaCPA AustraliaCPA Australia is one of three professional accounting bodies in Australia, the others being the Institute of Public Accountants and the Institute of Chartered Accountants of Australia....
- Malaysian Institute of Certified Public Accountants (MICPA)
However, AICPA and MICPA members who join the ICAEW under the Pathways to Membership scheme must maintain their home body membership.
ICAEW has signed Memoranda of Understanding (MOU) with accounting bodies in overseas countries. These bodies are The Institute of Chartered Accountants of Bangladesh
Institute of Chartered Accountants of Bangladesh
The Institute of Chartered Accountants of Bangladesh is the national professional accountancy body in Bangladesh. It is the sole organisation in the Bangladesh with the right to award the Chartered Accountant designation....
(ICAB), Institute of Chartered Accountants of India
Institute of Chartered Accountants of India
The Institute of Chartered Accountants of India is a national professional accounting body of India. It was established on 1 July 1949 as a body corporate under the Chartered Accountants Act, 1949 enacted by the Constituent Assembly of India to regulate the profession of Chartered Accountancy in...
(ICAI), Institute of Chartered Accountants of Pakistan
Institute of Chartered Accountants of Pakistan
The Institute of Chartered Accountants of Pakistan is a professional accountancy body in Pakistan. , it had 5,078 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...
(ICAP) and Institute of Certified Public Accountants of Singapore (ICPAS). There is also a joint scheme in place to enable members of the Chinese Institute of Certified Public Accountants (CICPA)
and the Hong Kong Institute of Certified Public Accountants
Hong Kong Institute of Certified Public Accountants
The Hong Kong Institute of Certified Public Accountants is the professional accounting body of Hong Kong.Its main responsibilities are:*Registration and regulation of profession accountants in Hong Kong....
to qualify as ACA with ICAEW.
ICAEW is an affiliate of the Institute of Chartered Accountants of the Caribbean
Institute of Chartered Accountants of the Caribbean
The Institute of Chartered Accountants of the Caribbean is an association of accounting organizations in the Caribbean region that promotes professionalism and standards of best practice in the region.-Purpose:...
.
The full ACA training programme is available in Cyprus, Greece, Malaysia, Mauritius, Romania and the Gulf states
Arab states of the Persian Gulf
"Arab states of the Persian Gulf" or "Arab Persian Gulf states" or "Persian Gulf Arab states" or "Arabic Persian Gulf states" or "Arab States of The Gulf", are terms that refer to the six Arab states of Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain and Oman, bordering the Persian Gulf....
.
Membership categories
Members have the designation ACA (Associate Chartered Accountant) or FCA (Fellow Chartered Accountant) after their name.Fellowship is intended to designate those who have achieved a higher level of professional experience. It is awarded, on application, to those members who have attained at least ten years of membership and who, at the date of application, have complied with the Institute's requirements on continuing professional development in the preceding three years and have no outstanding disciplinary charges against them.
Faculties
The ICAEW has seven faculties, each run by an in-house team working together with members who are experts in their particular sector:- Audit and Assurance
- Corporate Finance
- Finance and Management
- Financial Reporting
- Financial Services
- Information Technology
- Tax
The Tax Faculty was the first to be formed in 1990; The monthly TAXline publication started in 1991, and an annual Technical
Review (now Tax Planning) was first published in October 1992. The Tax Faculty joined the Confédération Fiscale Européenne
Confédération Fiscale Européenne
The Confédération Fiscale Européenne was founded in the year 1959 in Paris. The CFE is an umbrella organisation that embraces 33 national organisations from 25 European States and within them over 180,000 tax advisers....
(CFE) in 2001.
District societies
The Institute has 22 district societies, the largest of which is the London Society of Chartered Accountants (LSCA) with over 37,000 members. The LSCA has often taken the lead in making proposals for change, and was instrumental in the formation of the influential Hundred GroupHundred Group
The Hundred Group is a group of British finance directors , operating as the unofficial mouthpiece of the finance function of the FTSE-100 - a voice that carries considerable resonance in business...
of finance directors.
External links
- Official website of the ICAEW
- Key Facts and Trends in the UK Accountancy Profession, annual publication by the Professional Oversight BoardProfessional Oversight BoardThe Professional Oversight Board is a UK regulatory body specializing in the accounting, auditing and actuarial professions. It is a part of the Financial Reporting Council , the independent regulator of corporate governance and reporting in the UK.-Functions:The Board's state d purpose is to...