Business interest , financial acumen, interest in pursuing regulatory tasks makes chartered accountants. Above average academic profile, self discipline, analytical, logical and methodical approach are best suited for the profession. Slow but steady upward mobility.Introduction
Chartered Accountants (CA's) occupy key posts in business firms. They are responsible for money management, preparation and analysis of accounts and providing financial advice. Chartered Accountants maintain records of the company's financial transactions and profits, prepare tax returns and monitor costs. The records of the income and expenditure of the company forms the basis of the annual accounts. These account books are audited by qualified chartered accountants. Public sector organizations' accounts are checked by an appointed firm of accountants.
Only members of the Institute of Chartered Accountants under the Companies Act can do professional practice and are authorized to audit company accounts.
Nature of Work
Chartered Accountants can work as enterpreneurs or may be employed with business firms or other organisations. In large CA firms accountants often undertake specialised areas of work. They specialize in the following disciplines :
Financial Accounting
Financial accounting deals with keeping financial records i.e. operating accounts, internal audits, disbursing wages and salaries, paying accounts and sending out invoices, and managing taxes. Responsibilities involve interpreting accounts, supervising, controlling and organising expenditure and income.Management accounting
Management Accounting is a task senior chartered accountants perform. They collect, organize, collate and analyse information from all parts of the organization, including the financial departments. This data helps them to make regular critical analysis of past and present financial performance with projections for the future.Auditing
Auditing involves examining and verifying accounts and certifying them to be true and fair. Statutory audits are required by private and public sectors.Internal auditors examine and evaluate their firms' financial and information systems. They keep track of management procedures and internal controls to ensure against fraud and waste. They evaluate the efficiency, effectiveness of company operations and compliance with corporate policies and procedures.
Tax auditors review finanacial records and other information provided by taxpayers to determine the appropriate tax liability. CA's audit the accounts of those who are given loans by banks, issue certificate for tax purposes, and involve themselves in import export certification.
Cost accounting
Cost accounting involves calculating costs of particular operations, jobs, products taking into account all the relevant factors. It extends to budgetary control, forecasting, controlling expenditure and preparing reports. It involves analysing and comparing costs, translating information for non-financial managers into financial terms, and explaining financial information for them.Tax management
Tax managers specialize in optimising the firm's financial structure, to ensure the company pays as little as is legal in terms of taxes. They advise on the tax effect of performance goals, which includes pricing policies.
Tax management relates not only to direct taxes eg. income tax but to indirect taxes such as sales tax, agricultural income tax, entertainment tax etc. Tax planning is an important component of this function.Consultancy
Consulting CA's are involved in information management related to accounting. Data processing in business enterprises has become critical to efficient functioning. Chartered accountants specialising in information systems management are specially in demand. Consultancy involves management accounting, formulation of policies and resource utilization.Internal audits are also done by consulting firms for either determining operational efficiency of the departments or for ensuring that capital purchases are economical.
CAs are experts at corporate law and offer corporate legal advice, advice on company formation and structure, liquidation and financial aspects.
CAs advise on financial sources and prepare project reports.
They assess specific aspects of business such as share valuation for takeovers, issue of capital shares, amalgamation with other firms. Advice for acquisitions, mergers, profit improvement, joint venture programmes is also offered by consulting CAs. They advise for the preparation of prospectuses for share issues, take responsibility for managing pension funds and long-term investments, investigate prospective investments, and do the preparatory work on the possibility of taking over another company.CA in the industry
In the accounting section CA's are involved with book keeping, ledgers, vouchers, maintaining budgetary controls, depositing excise tax, sales tax and income tax for the industry, payments and collections, and bank and financial institutional dealings etc. In the finance department the CAs are involved with planning financial strategies. In small firms the account and finance functions are performed by the same department.
Work Conditions
Personal QualitiesAccounting is a desk job. Concentration and attention to detail are critical There is considerable work pressure when deadlines have to be kept Stressful due to responsibility of managing finances accurately Long working hours Out of office visits conducting audits Travel to clients' places of business, branch or government offices Self-employed accountants may work from home Job prospectsGood numerical ability Analytical mind to interpret data Logical and methodical approach Ability to interpret facts and figures accurately Good verbal and written expression Ability to explain clearly Ability to take stress related to work Business acumen Attentive to detail, patient and industrious Ability to deal with clients from large companies, small firms and individuals The opportunities in this profession are related to the economic growth of the country. The opportunties for Chartered Accountants are varied :
Study OptionsIndependent professional practice is one of the most popular options Employment with a Chartered Accountants firm Capital market services Employment with business houses and industry Employment with consultancy firms After +2 - The CA Foundation
This is a one year course. Though students eligible for the course are students passing class XII even Commerce graduates with 50% marks in Accountancy, Auditing, Mercantile/commercial law or graduates not having studied mathematics with 60% are eligible.
The instruction material, prepared by the Board of Studies of the Institute of Chartered Accountants is sent to the registered candidates. The students complete their study and take test papers. They have the option to attend contact classes organised by accredited institutions appointed by the Board of Studies.
After satisfactory compliance with the requirements of the Board of Studies and on completion of 12 months courses the foundation examination can be taken.This examination is held in June and December at various centres. On passing the foundation examination a candidate can register for articleship with a practicing CA.
Address for registration for the foundation course
Students residing in the State of Haryana, Himachal Pradesh, Jammu & Kashmir and Punjab and the Union Territories of Delhi and Chandigarh must apply to Director of Studies, The Institute of Chartered Accounants of India, Indraprastha Marg, New Delhi 110002 Students residing in the States of Gujarat, Maharashtra, Goa and the Union Territories of Daman & Diu and Dadra and Nagar Haveli must apply to Joint Director of Studies,The Institute of Chartered Accountants of India, Anveshak, 27, Cuffe Parade Comaba, P.B. No. 9926, Mumbai 400005 Students residing in theStates of Andhra Pradesh, Kerala, Karnataka and Tamil Nadu and the Union territories of Pondicherry and Lakshadweep Islands must apply to Joint Director of Studies,The Institute of Chartered Accountants of India,122, Nungambakkam High Rd, P.B.No. 3314,Chennai 600 034 Students residing in the States of Assam, Meghalaya Nagaland, Orissa, West Bengal, Manipur, Tripura, Sikkim Arunachal Pradesh, and Mizoram and the Union Territory of Andaman & Nicobar Islands apply to Joint Director of Studies The Institute of Chartered Accountants of India, 7, Russell Street, Calcutta 700071 Students residing in the States of Uttar Pradesh, Bihar, Madhya Pradesh and Rajasthan apply to Asstt. Director of Studies,The Institute of Chartered Accountants of India,16/77, Civil Lines, Kanpur 208001
Director of Studies,TheInstitute, of Chartered Accountants of India, C-1, Sector-1, Noida 201 301Practical training as an 'Article' (Apprentice)
Articleship is done under experienced Chartered Accountants. A Chartered Accountant with over 16 years experience can train 8 articles while someone with lesser experience may take fewer articles.The articleship period is one in which the student can learn all the technical details of work. After 12 months the article can take the Intermediate Examination of the Board of Studies. Articleship includes a year of industrial training. This can be done in the last year of articleship and on clearing the Intermediate examination. This is a rotating training in each of the departments in a financial, commercial or industrial undertaking. Final exams of the Board can be taken in the last year of articleship.
During articleship any other course of study or training cannot be pursued except graduation/ postgraduation/ CWA/ CS/ MBA/Law. Articleship has to be done for a period of 3 to 4 years.
After completing articleship
After the completion of articleship membership of the Institute of Chartered Accountants has to be taken for practicing as a Chartered Accountant.After graduation
Graduates have to take an entrance test. Those who have passed with Accountancy, auditing and mercantile or commercial law with 50% of the total marks are exempted. Other graduates must have secured 55% to be exempted from the entrance test.Intermediate examination
Intermediate Examination has to be taken in the following subjects:
Group IAccounting Accounting and Elements of Income-tax Law Cost Accounting Auditing
Group II
The papers may be answered in Hindi also.Mercantile Law, Company Law and Industrial Law Business Mathematics and Statistics Organisation and Management and Economics
Final examination
Those who have passed the Intermediate Examination of the institute and have completed the services as an articled clerk or as an audit clerk required to serve for admission as a member or have yet to serve nor more than 9 months of such services, can take the Final examination. Subjects are :
Group I
Group IIAdvance Accounting Management Accounting Auditing Company Law
Candidates may choose any one of the following combinations :Direct Tax Laws
Combination A
Combination BCorporate Management Secretarial Practice Managerial Economics and National Accounting
Combination COperational Research and Statistical Analysis System Analysis and Data Processing Cost Systems and Cost Control
Address for Reference:Management Information and Control Systems Tax Planning and Tax Management Management and Operational Audit
Institute of Chartered Accountants of India, Indraprastha Marg, New Delhi
Board of Studies, C1-Sector 1, Noida - 201 301.
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