Introduction
Chartered accountancy is the core of all business, be it big or small. A
chartered accountant’s work involves
auditing, taxation (e.g.
Service Tax,
Value Added Tax,
International Taxation etc.) , accounting and
financial planning,
outsourcing. It can be a very challenging and rewarding job.
Career prospects after doing chartered accountancy are exciting. Chartered
accountancy can be the first step to other rewarding careers in finance,
investment consultancy and fund management.
The Chartered Accountancy course is conducted by the Institute of
Chartered Accountants of India, which has its headquarters in New Delhi, 5 regional
offices (Calcutta, Kanpur, Chennai, Mumbai and New Delhi) and 81 branches under
these regional centres.
Step-by-Step
The qualifications for becoming a CA have changed over the years. Initially
— and that was decades ago — one could think of becoming a CA only after
finishing graduation and a candidate had to undergo five years of articleship
training. In 1991-92, ICAI allowed candidates who had cleared their Plus Two
examinations to appear for the Foundation Course of the CA programme. In
October 2001, ICAI introduced PE-1 and PE-2 system of examinations in place of
the Foundation and the Intermediate examinations. However, in 2006, ICAI
revamped the system and launched CPT, IPCC and FC.
The unique feature of the chartered accountancy is its curriculum, which is
theoretical education with complementary practical training. A student would
undergo theoretical education and practical training concurrently from the very
beginning. This balanced approach helps the students to appreciate the
underlying practical applications of the theoretical education scheme.
Common Proficiency Test (CPT)
CPT is an entry level test of four subjects i.e. Accounting,
Mercantile Laws, General Economics and Quantitative Aptitude.
Integrated Professional Competence Course
(IPCC)
This is first stage of CA curriculum wherein only working knowledge of
core and allied subjects to accountancy profession is covered. The
subjects of IPCC are classified into two groups which a student can study
and appear in the examination group-wise or both the groups together. IPCC
is designed to improve knowledge of accountancy linked to accounting
standards to build strong foundation for developing knowledge of financial
reporting at the final stage. The students update their knowledge of
business communication, business strategies, taxes, information technology
and audit.
CA Final
CA Final covers advanced application knowledge of core subjects like
financial reporting, strategic financial management, advanced management
accounting, advanced auditing and professional ethics and information
systems control and audit. In addition, principles of e-governance,
corporate and allied laws, international taxation and VAT are important
features of the updated subject contents.
Articleship
The students after passing Group I of IPCC will register for
Articleship for a period of three years with experienced CAs. Certain
rules do apply - CAs with 16 years of experience and above can take on
about 8 articles, those with less experience can train fewer articles and
these teachers or 'Principals' as they are called, can be changed during
the course of training. An agreement of training needs to be executed
before it begins. During the training time, articles learn the technical
details of the work and as time passes, they are given larger assignments
with less supervision. All articled clerks are paid a stipend depending on
their city's population.
Start Early
In today’s cut throat competitive world, it is advisable that a student
starts planning right after class 10. For chartered accountancy, a student can
register with the Board of Studies and prepare for entry level test while
pursuing 10+2. It is better to take mathematics at this level. Students of
commerce stream definitely have an advantage while pursuing this career. The
latest scheme of CA is designed to encourage young talented students having
aptitude for accounting education to make an early entry into the profession.
Is it the Right
Career for Me?
It is generally believed that only students of commerce should pursue
CAcourse. However, CA being a very practical course, the students from science
and arts streams can equally benefit and make a successful career. Students of
science and arts stream have to make extra efforts in order to understand some
complex accounting nuances and have to get basic knowledge of various
management topics. But it can be easily concluded that students of science and
arts streams can be successful CAs, if they are ready to toil.
What would it Cost Me?
Unlike other professional courses, the fee for becoming a
CA is very less,
which is inclusive of the cost of study material. For registering with IPPC you
have to shell out Rs 9000 while the fee for CPT is Rs 6700.
Funding/Scholarship
There is not much scope for any scholarships while pursuing chartered
accountancy.
Job Prospects
On completion of the training, the candidates need to gain membership to the
ICAI before they can start practicing as a CA. A member wishing to practice in
India or abroad needs to obtain a Certificate of Practice from the ICAI, the
yearly fee of which is Rs. 400. Once the membership is taken, the practicing
member cannot work in any other business or occupation without taking
permission from the council; they are only permitted to work in areas as
specified in the CA regulations. More information on enrolment or the
examinations can be requested from the Institute's offices or the Headquarters
at Indraprastha, New Delhi or the Board of Studies, C1 - Sector 1, Noida -
201301.
Pay Packet
For CA Inter: Generally candidates holding CA inter-qualification are paid
somewhere between Rs 7,500 and 15,000 depending on the type of firm. Payments
can be higher for candidates possessing other qualifications such as MCom or an
MBA. On the other hand starting salaries can be as little as Rs 4,500 to 5,000
in some small towns of the country.
For CA Final (FCA): Starting salaries range between Rs 12,000 to 30,000
depending on the type of firm and nature of the economy.
A full fledged CA can expect a salary between Rs 30,000 to 75,000 after serving
a stint of more than 5 years at a top firm.
Demand and Supply
It can be easily concluded that the country needs about 7,500 to 10,000
fresh CAs every year seeing the growth of Indian economy in the last 5 years.
Market Watch
Chartered Accountants have been one of the most sought after professionals
in India. Much of the reputation of CAs is due to the fact that their rigorous
training (both theoretical and practical) makes them practically jack of all
trades as far as the domain of finance is concerned. In spite of the sea change
in global trade systems and practices, the requirement of CAs has remained
steady.
The demand for CAs has been growing between 10% to 15% over the past 3 – 4
years. The demand however depends on the state of the economy and there is
direct bearing on the demand of CAs when the economy is in downtrend. But the
statutory clause for mandatory appointment of CAs provides substantial cushion
support to the CA fraternity as compared to other comparable peers.
International Focus
The qualification of CA is globally recognized hence industry outlook for
CAs is bright indeed. Much recognition for CA degree is due to the fact that
the CA course has been able to keep pace with changes in industry scenario.
Several new modules and topics have not only been incorporated into the CA
course but have been very effectively implemented to give increasing more power
to the
CA degree. In spite of the fact that several top-notch B-schools
(including IIMs) have produced some of the most brilliant B-school grads, it is
noteworthy that CAs has been able to retain their prominence in present world
order.
Read more:
Chartered Accountant in India
