Introduction: Chartered Accountancy is one of the lucrative and evergreen professions to opt for. Authorized use of style and title of Chartered Accountant indicates credible professional training and experience, worthy of coping with challenging professional opportunities. It confers certain rights and privileges. According to the Company Act in force, only Chartered Accountant(s) can be appointed as Auditor(s) and no body else. This stipulation alone is good enough to underscore the importance of Chartered Accountants. As regards their privileges, it is indeed a highly rewarding profession in terms of remuneration, esteem and social status. Theory without practical experience is useless. Practical experience without having theoretical concepts is blind and cannot be relied upon. I have seen many officials who have put in years of experience in Accounts department but fail to differentiate between a proforma invoice and an invoice/bill, between an Abstract Contingence Bill and Detailed Contingent Bill etc. They may not be able to explain the concept of vouching. They become myopic, fussy about piddling details and leave major lapses or loopholes to occur under their nose due to ignorance. Theoretical knowledge is equally important as that of practical experience. Late Sri. C. Rajagopalachari – the former first Governor General of India while commenting on the Sri. Adi Shankarachari’s ‘Bhajagovind’ slokas explains that knowledge when impregnated with practical experience becomes wisdom. Reflecting the concept, the curriculum of Chartered Accountant course is a well-conceived course, incorporating both theory and rigorous practical training. To keep abreast with the present-day functional requirements, training in Information Technology and a course on general management and communication skills have been made mandatory – as part of the curriculum of the Chartered Accountancy Course. When compared with other professional courses conducted by Universities, Chartered Accounts spell a class apart in terms of standard and competency. Their approach is different. They look at the systemic functions of checks and balances and come with corrective solutions wherever necessary. In the parlance of the common man, a Chartered Accountant is known as Auditor.
Qualification as Chartered Accountant is equivalent to a post graduation degree. By virtue of becoming a Chartered Accountant, one becomes a post graduate without really becoming a graduate. In this article, I would try to beaver away, to shed some light on the course content, procedure for gaining accreditation as Chartered Accountant, the role of Chartered Accountant etc.
Basis: The literature relating to this article has been collected from Sri. Sundeep M. Kotasthane, BSc. FCA DISA (ICA) who is a partner of M/s Sonpal & Jain Chartered Accountants at Bhopal and from his office staff among other sources. While I was in service in Central Power Research Institute, I was in interaction with Chartered Accountants who used to conduct mandatory audit once in a year. The basic source material for this write-up is the intangible insights I have developed over years as a result of my association with Chartered Accountants, aspiring as well as budding Chartered Accountants.
Importance of Accountancy: Financial activity is the nub of human activities. Financial management of resources of a concern or a nation can make or mar its wellbeing. Even at individual level, prudential management or otherwise of resources makes a difference between heaven and hell. A Chartered Accountant is considered as an expert professional in the areas like (a) Accountancy- book keeping and preparation of financial statements etc (b) Auditing- vouching that the financial statements drawn and the accounts maintained are conforming to the correct principles of account and representing the correct state of financial affairs. (c) Cost accountancy- dealing with cost control methods (Students possessing qualification as ICWA are better equipped in conducting cost audit etc when compared with CAs) (d) Valuation: dealing with valuation of shares etc (e) Taxation: dealing with Income tax etc (f) fraud detection (g) Management of financial resources etc. There is one important point to know here. Even though a qualified Chartered Accountant is groomed with tricks of the trade of the said functional area, no Chartered Accountant could be proficient in all the areas. Each area is so vast that it is very difficult to be an expert in all the areas of professional accountancy. They prove exceptionally good in their chosen areas of work.
Chartered Accountants are imbibed with enormous professional ability to analyse a welter of data and diagnose the state of financial health of a concern and provide invaluable financial guidance and provide able management of resources. I find it difficult even to file my simple looking Income Tax return, without the professional help of a practicing Chartered Accountant. They keep subtle provisions of IT laws on their finger tips.
The trend of students who opt for Chartered Accountancy: My father-in-law, late Sri. T. V. Rangarao, was a leading Chartered Accountant who practiced taxation. He opened his head office in Kakinada. His worthy brother, Sri. T. Sivarao, followed his footsteps, became a Chartered Accountant and has been running the show with remarkable success. The point I would drive home here is that generally family members of Chartered Accountants show proclivity to opt for the course and be in the line, keeping family tradition intact
Employment prospects: At present there are about one hundred and fifty thousand Chartered Accountants in India. According to one estimate, almost 70% of the Chartered Accountants are engaged in practice of taxation. The remaining lot of Chartered Accountants is in the employment in various organizations, mostly in private sector. They join government organizations; stay there for a couple of years and after acquiring some experience and confidence, they use the organizations as spring boards to get lucrative positions in the private sector and give up public sector assignments. Their career ambitions are very high; therefore, it is very difficult to retain them in organizations having slow growth or career advancement prospects. In the major BHEL Bhopal Unit, we do not find even one Chartered Accountant in their finance / accounts department. Chartered Accounts are in short supply. There has been a growing mismatch between supply and demand. In the present scenario, it is unthinkable that students, who qualify as Chartered Accountants, save exceptional cases, remain unemployed.
Right time for exercising Career Options: A student after completing Class – 10 level is required to exercise his career option. Broadly speaking, who desires to go in for engineering and other allied fields prefer to opt mathematics as main subject. Students who would like to enter in to medical side, or aspire to become scientists etc opt for science subjects. There are always some sections of students who prefer to pursue arts subjects. Students who would like to choose their option as Charted Accountants must exercise their option at this stage itself. First of all, must get enrolled as student of the Institute. It is preferable that he opts for commerce group for his study in his 11th & 12th. Cass (as per CBSE scheme). High school students may not be able to grasp the import and significance of chartered accountancy. This piece is also intended to arouse interest and awareness among parents so that they can provide proper career counseling to their children or wards.
Comparison with other non-formal professional courses: If a student wants to become an engineer following a non formal way of education, after competing 10+2 stage, he tries to pass studentship examination, and then appear for AMIE Section- A examination. After completion of AMIE Section –A, examination, he would undergo a mandatory practical training of six months making him eligible for appearing AMIE Section –B examination. A pass in AMIE Section –A and Section –B examination is equivalent to a degree in engineering. Then he can apply for enrolment as Associate Member of The Institution of Engineers (India) and then after acquiring requisite experience he can apply for getting elected as Member and later Fellow of the Institution of Engineers (India). The process of becoming a Chartered Accountant is more or less similar. The difference is mostly in terms of difference in emphasis in practical training.
Authority who conducts examinations: Board of Studies, The Institute of Chartered Accountants of India with its Head Office located in ICAI Bhavan, C-1, Sector-1, and Noida-201301 conducts the examinations. Interested persons are advised to consult the website:http://www.icai.org for further details. Email ID: bosnoida@icai.org. The professional body was established in 1949 under the Chartered Accountants Act, 1949 enacted by the Parliament. The Institute has 132 chapters spread across the globe including the 18 chapters situated in overseas. The address of Hyderabad Branch is as follows: Institute of Chartered Accountants of India, State Institute of Regional Center, 11-5-397/C, Red Hills, Hyderabad-500 004
Procedure for becoming a Chartered Accountant: (CA) (1) After passing 10th. Class, a student aspiring to become a CA has to enroll as a student of the Institute of Chartered Accounts of India. There is a prescribed application form and prescribed fee for this purpose. This enrolment is a mandatory requirement to be fulfilled for getting eligibility for appearing for Common Proficient Test (CPT). One can appear for Common Proficiency Test after completion of 10+2 level, provided the date of enrolment as student with the Institute is more than 60 days. To overcome the first milestone, enrollment as student with the Institute must be done immediately after completion of 10th class or at least 60 days before the commencement of CPT. After completing 10+2 examination, one can appear and clear the Common Proficient Test (CPT). (2) The second milestone is to clear Professional Competency Course (PCC). There are two options for clearing the second stage.
The first one is to join any one of the institutions accredited by the Board of Studies of the Institute for conducting Professional Competency Course. Bharatiya Vidya Bhavan’s Vivekananda College of Science and Humanities & Commerce, Sainipuri, Secunderabad-500 094 is one such institute. There are a number of such institutes spread across the length and breadth of the country which are accredited by the Board of Studies of The Institute of Chartered Accountants of India for conducting CPT courses.
The second option is to approach a practicing Chartered Accountant and register for practical training as article or audit assistant for completing three and a half years of articled training as part of preparation for appearing PCC and join Computer Training Program for completing 100 hours of Information Technology Training (ITT). It is very important to note that the prerequisite for appearing Professional Competence Test (PCT) is completion of 15 months training before three months period preceding the examination. In addition to this, eligibility criteria stipulate completion of Information Technology Training of the prescribed hundred hours before appearing PCT. (3) The third milestone: After completion of Professional Competence Test and after completion of the articled training of three and a half year plus 100 hours Information Technology Training, one qualifies for appearing examinations of Final Course. (4) While appearing for final examinations, one can join the course of General Management and Communication Skills. The fourth and final milestone is completion of final examination as well as completion of the course on General Management and Communication Skills. A candidate is entitled to become an Associate Member of Institute of Chartered Accountants of India after successful completion of the fourth stage.