CAREER IN CHARTERED ACCOUNTANCY
INTRODUCTION
Financial
statements of an enterprise depict the wholesome financial situation of the
enterprise for a particular period / at a particular date. The information in
these statements are of vital importance for a large section of the society,
which deal with that enterprise. It may be suppliers of material, customers,
investors, Banks, Financial Institutions, Insurers, Government, Tax
Authorities, employees, collaborators and even their competitors. Keeping in view
the importance of these statements and the large section of the society who use
these statements for taking many vital decisions, it is necessary that these
statements are attested by some person who is expert in this field so that the
objectivity, integrity, reliability and credibility of the information is
assured to a large extent. This function of attestation is done by professional
accountants, who are Chartered Accountants in our country.
Chartered Accountants were
the first accountants to form a professional body, initially
established in Britain in 1854. Chartered Accountants work in all fields of
business and finance, including audit, taxation, financial and general
management. Some are engaged in public practice work, others work in the
private sector and some are employed by government bodies. In India, the
profession of chartered accountancy is regulated by the Institute of Chartered Accountants of
India which was established by an
act of Parliament under the Chartered Accountants Act, 1949. Prior to 1949,
Restricted State Auditors were registered with the respective princely states
and British provincial State Governments. However, now, the Restricted State
Auditors have become redundant.
Chartered
Accountancy Course offers the students a dream career in the specialized areas
of Accounting, Auditing, Corporate Finance, Corporate Laws, & Taxation.
Chartered Accountancy is a challenging profession that offers practice or job
opportunities in the areas of accounting, auditing, corporate finance, project
evaluation, & company & other business laws, taxation & corporate
governance. The Chartered Accountants are entrusted with substantial
responsibility under various legislations such as compulsory audit of the all
companies, banks, stock brokers, big income-tax assesses, large bank borrowers,
etc. A Chartered Accountant is one who is accepted as a
member of the Institute of Chartered Accountants of India (ICAI) after having
passed the final examination for the Chartered Accountancy course conducted by
the institute.
NATURE OF WORK
Chartered
Accountancy offers practice or job opportunities in the areas of accounting,
auditing, corporate finance and other business laws, taxation and corporate
governance.
The main
function of a Chartered Accountant is to deal with the management of money and
provide financial advice. Chartered Accountants maintain records of financial
transactions which every organization is required to keep by law. They also
carry out company audits. Legally only Charted Accountants are allowed to audit
a company’s books. Chartered Accountants are member of the Institute of
Chartered Accountants of India. They work in private practice or in the account
department of firms and organizations.
The
types of functions generally performed by the Chartered Accountants are quite
varied; some of the important ones amongst them are listed below:
(i)
Accountancy:
The writing up of accounts and the preparation of Financial statements from the
simplest receipts and payment Accounts of a small club to the complex and
detail accounts of large public limited companies.
(ii)
Auditing: The purpose of auditing is to satisfy
the users of financial Statements that the accounts presented to them are drawn
up on Correct accounting principles and that they represent a true and fair
view of the state of affairs.
(iii)
Taxation: The
assessment of taxes is closely linked to financial Accounts. The Chartered Accountant with his
experience in accounts is in an advantageous position to prepare the returns
for tax purposes, represent assesses before the income tax authorities and
render general advice on taxes to his clients. The services of CA may be
requisitioned by the tax department for auditing taxation cases with large
revenue potential.
(iv)
Cost Accountancy: A
Chartered Accountant is equipped to provide information on costing for the
guidance of management, introduce cost control methods and assist the
management in determining appropriate selling prices.
(v)
Special Company Work: The services or advice of Chartered
Accountants are frequently sought in connection with matters such as the
formation, financial structure and liquidation of limited companies.
(vi)
Investigation: Chartered Accountants are often called
upon to carry out investigation to ascertain the financial position of business
house for the purpose of issue of new shares, purchase or sale or financing of
business, finding out reasons for increase or decrease of profits,
reconstruction and amalgamations.
(vii) Executors
and Trustees: A Chartered Accountant is also often
appointed executor under a will or trust in order to carry on the
administration of the estate or settlement.
(viii) Directorship: Many members of the Institute who hold
senior positions in industry and commerce are also directors of their
companies.
(ix)
Companies Secretarial
Work: As
a Secretary, the Chartered Accountant is an important link in the management
chain.
(x)
Management Accounting: The
Chartered Accountant’s service is utilized in a variety of ways like
formulation of policies, control and performance evaluation.
(xi)
Share Valuation Work: A
Chartered Accountant undertakes the valuation of shares of public and private
companies at the time of amalgamation or reorganization.
(xii) Other
Activities: Other
duties undertaken by a Chartered Accountant includes those of an Arbitrator for
settling disputes specially those connected with insolvency work such as
the preparation of statements of affairs and the duties of a trustee in
bankruptcy or under a deed of arrangement.
Career Options for
Charted Accountants
Independent Professional
Practice
As
practitioners of public accounting, CAs may start professional practice as a
proprietor or join any existing firm as a partner or staff member. A CA
provides compliance and review services and expert advice in Direct and
Indirect Taxations. He also acts as a business advisor by providing all kinds
of services including the preparation of financial reports, restructuring of
finance options, preparing financial projections, etc.
Management Consultancy
Services
CAs play a vital role in assisting business and
industry to improve the use of their resources. The range of management
advisory services rendered by CAs reflect their expertise in diverse areas like
financial management, strategic management, planning and financial policy
determination, etc. As direct and indirect tax planners and advisors, CAs help
business and individuals in tax planning and tax compliance and represent their
clients before government agencies.
Opt for
Industry/Government Organisation
A CA may prefer to join an industry or government
department and ultimately hold responsible positions. Many Chartered
Accountants hold responsible positions in business or industrial firms as CEOs,
CFOs, COOs, Managing Directors, etc.
Opportunities in Global
Arena
Today, Indian Chartered Accountants have an
impressive presence throughout the globe holding eminent positions. Many MNCs
as well as KPOs prefer Indian CAs for their expertise in IFRS, International
taxation, International Trade Laws and Accounting in IT environment.
HOURS
OF WORK:
Life
as a chartered accountant can
be very tedious. An average day normally entails working from 9am to 5pm, with
minimal breaks in between. Most work is done in ones assigned office. However,
a certain amount of travelling may also be required as some clients wish for
their financial services to be done on their premises. While chartered
accountants have fixed working hours, they normally find themselves working a
lot of overtime, especially if they find themselves working for a larger
company.
HEALTH
AND/OR ACCIDENT HAZARDS
Continuance
working on computer might cause eye sight weakness and back pain and headache.
Chartered
accountants live stressful lives. They never know how long they will be
required to work overtime, and they must constantly deal with the pressures of
nearing deadlines.
EARNINGS
A fresh CA
in a medium sized CA firm can earn Rs.1.2- 1.8 lakhs a year while the scales
can be higher (4-6 lakhs) in the industry.
·
Experience of 10-15 years can fetch Rs 35-40lakhs
·
Senior CAs with over 15 years of experience in Private
companies get Rs 40- 50 lakhs.
·
Government scales are standard.
QUALIFICATIONS
REQUIRED
Age: Minimum age is
18 years
Education:
10+2 Pass / Graduation and
registration in Institute for Common Proficiency Test
One can enter
the Chartered Accountancy course by joining Professional Education
course. This course is available in two parts – i.e. (A) Professional
Education (PE Course I) and (B) Professional Education (PE Course II).
Steps To Qualify as a Chartered Accountant
1. CPT Route
- Enrol with the Institute for Common
Proficiency Course (CPC) after passing class 10th examination.
- After completion of specified period (60 days)
from the date of registration for CPC with the Board of Studies and after
appearing in 10+2 examination, appear and pass in CPT.
- Enrol for Group I or Group II or for both
Groups of Intermediate (IPC) Course.
- Complete Orientation Course of one week
spanning 35 hours, necessarily before joining the Practical Training.
- Complete 100 hours Information Technology
Training (ITT) necessarily before joining the Practical Training.
- Appear in Intermediate (IPC) Examination on
completion of 8 months of study course as on first day of the month in
which the examination is to be held
- Join Practical Training after passing either
Group I or both groups of Intermediate (IPC) Course.
- Complete First General Management and
Communication Skills (GMCS) course (15 days) during the first year of
practical training.
- Complete Second General Management and
Communication Skills (GMCS) course (15 days) after completion of 18 months
of practical training but before completion of practical training.
- Clear Group II of Intermediate (IPC)
Examination if not done earlier.
- Register for CA Final Course and prepare for
CA Final Examination.
- Complete Advance Information Technology
Training during the third year of practical training but before appearing
in the Final Examination.
- Complete Practical Training of three years.
- Appear in the Final examination on completion
of the practical training or while serving last six months of articled
training on or before the last day of the month preceding the month in
which the examination is to be held.
- Pass Final examination and complete GMCS II,
if not completed earlier.
- Enrol as a member of the ICAI and be designate
as “Chartered Accountant”.
2. Direct
Entry Route
I.
Commerce Graduates/Post-Graduates (55%) or Other Graduates/Post-Graduates (60%)
- Enrol with the Institute for Intermediate
(Integrated Professional Competence) Course for both groups.
- Complete 35 hours Orientation Course spanning
one week and 100 hours Information Technology Training (ITT).
- Register for Practical Training of three
years.
- Complete General Management and Communication
Skills (GMCS) -I Course during first year of practical training
- Appear in Intermediate (Integrated
Professional Competence) Examination after nine months of Practical
Training and Study Course of eight months concurrently from the date of
registration for the Intermediate (Integrated Professional Competence)
Course.
- Appear and pass in both groups of Intermediate
(Integrated Professional Competence) Course.
- Register for CA Final Course and prepare for
CA Final Examination.
- Complete General Management and Communication
Skills (GMCS) -II Course (15 days) course while serving the last 19 to 36
months of articled training.
- Complete Advance Information Technology
Training during the third year of practical training but before appearing
in the Final Examination.
- Complete three years period of Practical Training.
- Appear in the Final Examination while serving
last six months of practical training on or before the last day of the
month preceding the month in which the examination is to be held.
- Pass Final examination.
- Enrol as a member of ICAI and be designated as
“Chartered Accountant”.
Note: The
term other graduates / post graduates will not cover a graduate or a
postgraduate in Music, Painting, Photography, Sculpture and the like.
II.
Candidates who have passed Intermediate level examination of The Institute of
Company Secretaries of India and The Institute of Cost Accountants of India
- Enrol with the Institute for Intermediate
(Integrated Professional Competence) Course either for Both Groups or
Group I.
- Rest of the steps will follow as steps in CPT
route mentioned above.
Address for registration:
Regional Offices of ‘The Institute of Chartered Accountants of India’. The Assistant Secretary, Central
Indian Regional Council, The Institute of Chartered Accountants of India, Post
Box No.-314, 26/77-B, Kanpur Civil Lines, Kanpur-208001. Uttar Pradesh, Bihar,
Madhya Pradesh, Rajasthan Uttranchal & Jharkhand
Examination:
Twice a year in May and November. A student may register at any time
during the year. The
examinations are held twice a year in May and November. A student should get himself/herself registered at least ten months before
the examinations. For May
Examination he/she should, therefore, be registered before 30th June of the preceding year and for
November Examination he/she should be registered before 31st December of the preceding year.
Medium of Examination:
Students are allowed to opt for Hindi Medium for answering question papers.
PERSONAL ATTRIBUTES REQUIRED
- Business
acumen and numerical ability
- Good
communication skills
- Objective
Attitude
- Independence
of thought and Integrity
- Ability
to work under pressure of deadlines.
If you have good numerical ability, an analytical
mind, a logical and methodical approach a career in accountancy could be the
career for you.
SCHOLARSHIP
The
Institute Chartered Accountants of India grants various scholarships to students namely,
Merit, Merit-cum-Need based and Need based and Weaker-sections scholarships out
of the funds of Institute and Endowment Schemes created by individual
donors/trustees/societies.
METHODS OF ENTERING THE
JOB
Campus interviews for
freshly qualified Chartered Accountants are organized by the Institute at
various Centres viz. Bangalore, Kolkata, Chennai, Kanpur, Mumbai and New Delhi. The scheme has been evolved to
provide an opportunity to employing organisations as well as young professional
aspirants to interact and explore the possibility of taking up positions in
industry.
TYPICAL PLACES OF
EMPLOYMENT/SELF EMPLOYMENT
Chartered Accountants have
various options for pursuing rewarding career. Some of the available options are:-
·
Set up independent professional
practice.
·
Join a practicing firm of
Chartered Accountants.
·
Render services in the field of
capital market.
·
Engage in your own
industrial/business venture.
·
Take up a suitable position in
business or industry.
The choice depends largely on your
personal inclination. Many in due
course have risen to occupy managerial and senior executive posts of
responsibility, like Chief Accountant, Financial Advisor, Internal Auditor, General
Manager, Company Director etc. Nevertheless
most Chartered Accountants concerns are normally advertised. Most
employers also notify junior-level vacancies to Employment Exchanges. Better paid Government posts are
filled through the Union and State Public Service Commissions.
There
will always be opportunities for financial/accounting and tax consultancy in
every business, however big or small. With growth, industrialisation and the
current turn towards globalisation, the corporate sectors require the services
of more and more Chartered Accountants. Hence, it is evident that the future of
Chartered Accountants is very secure. Some of the recruiters are:
- GECIS
(formerly GE Capital Intl Services)
- S
R Batliboi & Co
- L&T
- IBM
India Pvt Ltd
- Tata
Consultancy Services
- Barclays
Shared Services Pvt Ltd
- Axis
Risk Consulting Pvt Ltd
- Syndicate
Bank
- Landmark
Group, UAE
- Vedanta
Resources Plc
- Caterpillar
India Pvt Ltd
SOURCES
OF FURTHER INFORMATION
- Office of the Board of studies, C.I. Sector-I,
Noida-201301, Ghaziabad District, Uttar Pradesh
- The Institute of Chartered Accountants of
India ICAI Bhawan, A-29 Sector 62, Noida - 201309, www.icai.org
- Employment newspaper
- CIRTES, Noida
- http://www.shiksha.com/getArticleDetail/164/Chartered-Accountants-Nature-Of-Work-Employment-Avenues-Earnings?token=aa&page=6
- http://plancareer.org/en/career/12/1158/chartered-accountant-career-option-and-requirements.html
- http://cvc.nic.in/codeethics.pdf
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