Chartered Accountancy (CA) – – Srinagar – 21-May-2012

Posted: 23/05/2012 in News

It is the toughest of its kind but it’s not a marathon, only the ambitious attempt it. It is the highest campaign but it’s not the Everest, it will reward you for life but it’s not a luxury. These were some breathtaking words when I first came to know about Chartered Accountancy. Being a chartered accountant when one conjures an image of a person which he thinks might be involved in some kind of accounting mumbo jumbo as CAs are known for their number crunching affairs.

Gone are those days when CA was looked as post mortem officer as of now this bespectacled person rummaging balance sheets of a company is like a prosperous entity in itself. Chartered Accountant comes up like a brand which of course plays a proactive role of being at organizations helm. It is one of the most coveted professions available today for youngsters. As in market it offers best salary packages, great exposure, and dynamic field work attached with a king size respect in behemoth corporate as well as in society. When taking a ride back in to the past one founds chartered accountants were the first ones to form a professional body.

It all started at Britain in 1854 when Edinburgh Society of Accountants were formed following by Glasgow Institute of Accountants and Actuaries (1854) and the Aberdeen Society of Accountants (1867) each were granted a royal charter almost from their inception. The title is an internationally recognized professional designation. CAs play a vital role in assisting business and industry to improve the use of their resources, increase their efficiency there by achieve their objectives.

The range of services rendered by CAs reflect their expertise in diverse areas like financial management, strategic management, planning and financial policy determination, preparation of financial reports, preparing financial projection, Tax Planning and what not. With the help of robust knowledge in thrust areas some are engaged in private practice also. In almost every country there is a professional body of accountants like Institute of Chartered Accountants of Australia, Institute of Chartered Accountants in England & Wales, Institute of Chartered Accountants of Pakistan, Certified Public Accountants of America (CPA) etc. The aforesaid bodies are for regulation, recognition as well as for setting standards on fair practice of accounting. Now coming back to our country India we are lucky as we have the second largest body of chartered accountants in the whole world with 150000 members globally and counting. Formally known as (ICAI) Institute of Chartered Accountants of India is a professional accounting body set up under the act of parliament. Being a premier accounting body with its head quarters at New Delhi it was established on 1st July 1949 as a body corporate under the Chartered Accountants Act, 1949 enacted by the Constituent Assembly of India acting as the provisional Parliament of India to regulate the profession of Chartered Accountancy in India. ICAI is the only licensing cum regulating body of the financial audit and accountancy profession in India. ICAI works closely with government of India, Ministry of Corporate Affairs (MCA), securities exchange board of India (SEBI), Central Bank of India (RBI) in formulating and enforcing standards.

To become a member of ICAI a candidate has to go through rigorous three levels which are optimally blended with theoretical as well as practical training for achieving the title of CA. To clear all the three levels viz.CPT IPCC and the last leg of CA final one need to be consistent, persistent, and preservative.

The Chartered Accountancy course is considered to be one of the toughest professional courses in India but not difficult if one puts his fullest efforts as the passing rate in CA examination is around 15% but now showing an upward trend. In India a student can enroll for CPT registration that is common proficiency test after passing 10th grade exam, but can appear in the entrance test which consists of 200 multiple choice questions only after passing 12th class. CPT is a test with negative marking and covers four basic subjects viz. Fundamentals of Accounting, Mercantile Laws, Economics and Quantitative Aptitude. Accounting carries 60 marks, Mercantile Laws carries 40 marks and Economics & Quantitative Aptitude carries 50 marks each. The passing grade for CPT is 120 marks out of 200.CPT exams are held in June and December in paper pencil mode. On-line CPT exams are also conducted periodically. To clear the entry level the Institutes level of expectancy is basic knowledge of above subjects. While 12th pass students have to clear CPT first to enter in to IPCC level.  Graduates with minimum 55% marks in commerce and 60% marks in science can get direct admission in IPCC (integrated professional competence course) II level of CA as per proposed amendment. A person can take the IPCC Examination after passing CPT and nine months of study. IPCC has two groups of seven subjects. Group – I consists of four subjects and Group – II of three subjects.

A passing grade is awarded if the candidate obtains 40% marks in each subject and 50% in the aggregate in each group. The level of expectancy at second level is working knowledge of core finance areas like Accountancy, financial management, cost accounting, Taxation, Auditing, strategic management etc. In 2008 ICAI felt the urgency of churning out mid-tier accountants also so they introduced Accounting Technician course (ATC).With the coming of ATC a candidate who may not be able to clear finals for any reason will be still awarded ATC certificate.

After passing Group – I of IPCC, a candidate must undergo a rigorous 3 year on-the-job training as article or audit assistant, (article ship) followed by 100hrs ITT and Orientation course. Only members in practice are entitled to engage such articles. ICAI strictly governs through Regulations, the stipends, working hours of such assistants. Articles provide CA firms a steady supply of motivated assistants while providing the students with invaluable on-the-job training. During the last year of article ship, a student may opt for industrial training instead. Industrial training can be for a period of 9 to 12 months. Finally when a candidate clears IPCC I&II he or she takes an advent step into the last leg of CA course. CA Final Examination is the last level of Chartered Accountancy Examinations.

An IPCC pass student is eligible during the last six months of article ship for examination. In finals expert level of knowledge is required to get through. This exam consists two groups of four subjects each viz. Financial Reporting, Strategic Financial Management, Advanced Auditing and Professional Ethics, Corporate and Allied Laws, Advanced Management Accounting, Information Systems Control and Audit, Direct Tax Laws and Indirect Tax Laws. A passing grade is awarded if the candidate obtains 40% marks in each subject and 50% in the aggregate in each group.

To all those students who pass final were have to complete 15 days GMCS (General Management & Communication Skills Course) but as per the latest announcement of Board of Studies ICAI now it is divided in Two parts. After achieving membership of august institute like ICAI there by prefixing ‘ACA’ Associate Chartered Accountant before your name adds Value, Integrity, Prestige, dignity and which automatically imbues the Job market to welcome him with Honor. In nutshell be it recession or boom in business, world is full of uncertainties therefore changes in Regulation, Listing, Convergence with (IFRS)International financial reporting standards, Implementing Direct tax code(DTC)and continuous caliber of remaining abreast with latest updates definitely craves a niche for CA to look after.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s