Introduction:

With the rapid growth in economy, careers in finance and accounts have gained tremendous popularity and the most prestigious career option in this filed is that of Chartered Accountant. Chartered Accountancy is a dynamic, challenging and rewarding profession. All the countries have their own Accountancy Association which regulates the quality and quantity of the professionals in this field. Chartered Accountancy Course is a professional course in Accounting introduced in our country in 1949, with the enactment of the Chartered Accountants Act. The Institute of Chartered Accountants of India (ICAI) was formed the same year . This Institute is both an examining and a licensing body. It is the responsibility of the institute to conduct the Chartered accountancy (CA) Course. The course involves a blend of theoretical education and practical training which run concurrently for a period of three years and equips a student with knowledge, ability, skills and other qualities required of a professional accountant.

A Chartered accountant is one who is specialised in accounting, auditing and taxation. He also serves as a management and corporate caretaker. In recent times, accountancy has become popular as a profession. The services of a CA is required in money matters even in a small business . Moreover according to the Company Act only CA's in professional practice are allowed to be appointed as auditors of companies in India. A chartered accountant is a person who is accepted as a member of the Institute of Chartered Accountants of India (ICAI) after having passed the Final examination of the Chartered accountancy course conducted by the institute.

Many multinational companies have come forward in the Chartered Accountancy field. ICICI Prudential, Om Kotak Mahindra, Birla Sun-Life, Tata AIF Life, Reliance, HDFC Standard Life-Chartered Accountancy Co., Max New York Life, SBI Life Chartered Accountancy, ING Vysya Life etc. are the top companies in the private sector. In non-life Chartered Accountancy segment, major private players are ICICI Lombard, Royal Sundaram, Cholamandalam, IFFCO Tokyo, Tata AIG etc. All Chartered Accountancy companies come under the Chartered Accountancy Regulatory and Development Authority (IRDA) which is established to regulate, promote and ensure orderly growth of Life and General Chartered Accountancy industry in India.

The scope for this lucrative career is bright in an economically developing nation like ours and as such the career can be termed as challenging and rewarding for competent professionals in the field.

CA programme is of 5 years inclusive of the training period. It has three sections:

  • Foundation
  • Intermediate Course (new)/ IPCC (old)
  • Final examination

Foundation Course : Enrol for Foundation Course after appearing in Class 12th Examination conducted by an examining body constituted by law in India or an examination recognised by the Central Government as equivalent thereto. Complete four months Study Period. Register till 30th June/ 31st December for being eligible to appear in November/ May Foundation Course Examination. Appear in Foundation Examination after passing in the Senior Secondary Examination (10+2 examination) conducted by an examining body constituted by law in India or an examination recognised by the Central Government as equivalent thereto and on complying with above.

Intermediate Course : Join Intermediate Course after passing Foundation Examination. Undergo Four Weeks Integrated Course on IT and Soft skills (ICITSS) consisting of Courses on Information Technology and Orientation Course at the earliest but these are to be completed compulsorily before commencement of their articleship. Appear in Intermediate 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 articled training after passing either of the Group or Both Groups of Intermediate Course and after successfully undergoing ICITSS. Clear the balance Group (if any) of Intermediate Examination.

Final Course: Register for Final Course. Successfully undergo Four Weeks Advanced Integrated Course on Information Technology and Soft skills (AICITSS) consisting of Courses on Advanced Information Technology and Management Communication Skills during the last two years of practical training but before appearing in the Final Examination. Appear in the Final Examination on completion of the practical training or while serving last 6 months of articled training on or before the last day of the month preceding the month in which the examination is to be held after successful completion of AICITSS. Complete articled training of 3 years. Pass Final Examination. Enrol as a member of the ICAI and be designated as “Chartered Accountant”.

General FAQs of students regarding CA: https://resource.cdn.icai.org/45555bos35643faq.pdf

Eligibility:

A Candidate who has passed the 10th examination conducted by an examining body constituted by law in India (or an examination recognized by the Central Government as equivalent thereto) can register for the Foundation Course of the CA programme. But they can write the examination only after passing the Senior Secondary Examination (10+2) or waiting for the 10+2 exam results. There are no restrictions with regard to the age of the candidate or marks secured in Senior Secondary Examination.

Candidates who have passed the Final Examination conducted by the Institute of Cost & Works Accountants of India (ICWAI) or the Institute of Company Secretaries of India (ICSI) can register for Intermediate Course of CA.

Candidates aspiring for this career should have a pleasing personality, practical approach and a natural instinct to deal with figures to do well in this profession.

Skills Required:

  • Financial Analysis
  • Financial Reporting
  • Tax Compliance

Job Prospects & Career Options:

The growing importance of trade and industry along with the rapid growth of capital and money markets in an economically developing nation like ours, has increased the importance of Chartered Accountants enormously. Moreover all the companies registered under the Companies Act, are required to get their accounts audited only by practicing Chartered Accountants. A qualified Chartered Accountant has the option of joining the Government Service, Public Sector undertakings or taking up a lucrative assignment in the private sector. The duty of Chartered accountant is to ensure that the financial transactions of an organisation are maintained according to the law, they also keep track of cost of management of the company and manage tax matters.

Chartered accountants work as Finance Managers, Financial Controllers, Financial Advisers or Directors (Finance) and watch over the finances in the day to day management of companies. Their main areas of work include Accountancy, Auditing, Cost accountancy, Taxation, Investigation and Consultancy.

The accounting department prepares, analyses financial reports and documents of an organisation. Auditing involves checking the accuracy of the financial statements, ensuring that the accounts presented are drawn up on correct accounting principles. Cost Accountancy involves maintaining cost auditing records, compiling cost information, installing cost control and performing cost audits. Taxation involves dealing with direct taxes, like income tax and wealth tax, assessment of taxes, filing returns and providing advice on indirect taxes. Investigation include expert examination of specific aspects of businesses for the information of interested parties on new issues of share capital, the purchase, sale or financing of a business and for reconstruction. The various areas of consulting include Management accounting and internal audit, corporate law advice, project planning and finance, business advise, systems design and information consultancy. Chartered Accountants also act as directors, arbitrators for settling disputes, handling work related to insolvency, bankruptcy etc. and also as executors under a will or trust in order to carry out the administration of an estate or settlements. They are also engaged in activities like markets research, budget planning, working capital management, inventory control, policy planning, securities consultancy, registrar of issues of securities etc.

Some of the opportunities available for Chartered Accountants are in capital markets, business houses and industry. They can also have their own consultancy or private practice which could be more lucrative and satisfying. With the country liberalizing its policies and approach, opportunities are expected to grow further.

They are also well placed in government sector as director finance, chief executive or the Head Of the Department of the accounts, information technology etc. They help the government for proper implementation of accounting system.

Other career option:

After passing the CA examination one could go for management Accountancy course; courses like Diploma in Insurance and Diploma in Information System Auditing.

Prospects Abroad :

Institute of CA of India is well recognised by Institute of England, Wales and Australia. The members of ICAI can do practice or they can go for employment in these countries. ICAI is not approved by several countries like United Nations of America. Since ICAI is a member of the international Federation of Accountants committee and also international federation of Accounting Standard board, one can do their services in these countries. But for practising they should undergo a particular examination conducting by the respective countries. The examination conducted by USA is called CPA, Certified Public Accountant Examination.

Challenges:

  • It can be a stressful job as the responsibilities are enormous and there is no scope for any errors.
  • Regular update of knowledge is a must otherwise it may lead to stagnation in career.

Remuneration:

Chartered Accountancy is a well-paid profession, be it Government Service, private firms or own consultancy. Most multi-national firms provide numerous perks besides the salary such as medical benefits, house allowance and so on.

Average salary of a CA is around Rs 6.5 Lakhs p.a.

At entry level a CA can earn anywhere around 4-6 lakhs p.a., and Multinational companies pay even more – sometimes over Rs. 10 lakh per annum to freshers

After around 10 years of experience can earn up to 10-25 lakhs p.a. depending on locations like state, company etc.

Useful Links:

http://plancareer.org/en/career/12/1158/chartered-accountant-career-option-and-requirements.html

Bibliography:

ICAI. (2018). ICAI - The Institute of Chartered Accountants of India. [online]

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