Chartered accountant (India)
 | This article may require copy editing for grammar, punctuation, and arbitrary capitalization. (March 2024) |
In India, a chartered accountant is a qualified accountant of the Institute of Chartered Accountants of India. They are required to have sound knowledge of accounting, auditing, costing and various aspects of direct and indirect taxation.[1]
A chartered accountant can perform tasks prescribed by the Institute to ensure proper accounting, auditing and taxation controls are followed by organisations in the running of their business and operations.
The Institute of Chartered Accountants of India was formed as a body of registered accountants in 1949.[2]
To become eligible, the candidate must pass an examination conducted by the Institute and complete required theory course and practical training. The course is difficult to clear, requiring rigorous preparation, with a small number of students succeeding.
Education[edit]
Following are the required educational qualifications:[3][4]
An aspirant can enroll either after completion of 12th grade, graduation or post-graduation.
An aspirant needs to enroll in a 2-year practical training articleship with a registered chartered accountant after passing the Intermediate exam in both groups.
After completing the articles, he can appear for the CA final exam after six months from the date of completion.
Before appearing for the CA final exam, he is required to complete four papers of the self-paced online module and the four-week mandatory training program of advanced ICITSS.
Eligibility after 12th[edit]
1. Eligibility for the Foundation course is clearance of the 12th board exam conducted by an examining body constituted by law in India or outside India or an examination recognized by the central government or the state government.
The aspirant should enroll in the CA Foundation with ICAI, and after 4 4-month study period, he will be eligible for the writing exam.
After clearing the CA Foundation Exam, he can register for CA Intermediate Course and should complete the Orientation Program and Information Technology Training (ITT).
The aspirant is required to pass both groups of CA Intermediate to Join the Articleship, a 2-year practical training program with a registered Chartered Accountant or a Chartered Accountancy Firm.
He can register for the final course of the Chartered Accountancy course after clearing both groups at the Intermediate level.
The aspirant can appear for the CA Final exam after 6 months from the date of completion of Articleship and get qualified after passing both groups with the requisite percentage,
The aspirant is eligible to become a member of ICAI on successful completion of all the necessary courses, required exams and mandatory training specified above.
The aspirant becomes an eligible person to be called a chartered accountant only after he registers with ICAI and obtains membership. CA has gained much prevalence in India due to a lot competition for them.
Eligibility after Graduation[edit]
An aspirant can appear for the CA Intermediate exams directly after the completion of an 8-month study period from the date of registration and is also exempt from appearing for the CA Foundation exam if he is a graduate and has cleared the examination with a mandatory percentage . He will have eligibility registration for the Final Course of CA and clear the same after passing the CA Intermediate examination.
He will be eligible for ICAI membership after the completion of the required examination, training, and Articleship period.
He can start practicing as a chartered accountant only after getting membership post registering with ICAI.
Commerce Graduates[edit]
A Commerce graduate can apply directly for the CA Intermediate Course in case:
Clears graduation with a minimum 55 percentage marks by studying at least any 3 subjects out of Accountancy, Auditing, Direct and Indirect Taxation, Mercantile or Corporate Law, Economics, Management (including Financial Management), Costing, Business Administration, or Management Accounting, or similar to the title of these papers with different nomenclatures.
Non-Commerce Graduates or Post Graduates[edit]
A person who is a non-commerce graduate can aspire to be a chartered Accountant, if he has completed his graduation from an approved UGC-recognized educational institution with a pass percentage of 60 or more.
He can appear directly for the CA Intermediate exams after the completion of an 8-month study period from the date of registration and is also exempt from the CA Foundation exam. He can register and clear the CA Final exam after completing of CA Intermediate exam.
He will be eligible for ICAI membership after the completion of the required examinations, trainings, and Articleship period.
He can start practicing as a chartered accountant only after getting membership post registering with ICAI.
Post qualification of Intermediate Levels in ICSI or ICMAI[edit]
• Cleared Intermediate level examination from Institute of Company Secretaries of India or The Institute of Cost Accountants of India (ICMAI).
Responsibilities[edit]
A Chartered Accountant in India performs following activities:[3]
- Offers advice in financial planning.
- Planning budget and other financial system.
- Treasury and tax related advises.
- Performance of Annual financial audits.
- Assessing companies financial risk.
- Preparation of financial statements.
- Financial planning and forecasting.
- In case of any discrepancy, liaison with internal and external auditors.
Curriculum[edit]
Following are the curriculum and eligibility for clearance of each of the stages:[5][3]
Foundation Course[edit]
Includes four subjects of 100 marks each and duration of exam being 3 hours each.
Paper Numbers 1 & 2 will be subjective type while paper numbers 3 & 4 will be objective type with negative marking.
Paper 1: Accounting
Paper 2: Business Laws
Paper 3: Quantitative Aptitude
Part 1: Business Mathematics (40 Marks)
Part 2: Logical reasoning (20Marks)
Part 3: Statistics (40 Marks)
Paper 4: Business Economics
Qualifying Marks
Examination for Chartered Accountancy Foundation Level are conducted each year in May and November.
An aspirant needs to get 40 percent minimum in each subject and an aggregate of 50 percent in all subjects, to qualify in the foundation examination.
Intermediate Examination[edit]
The Intermediate Exam consists of 3 papers each in two groups carrying 100 marks each with prescribed time limit of 3 hours during exam.
GROUP 1
Paper 1: Advanced Accounting
Paper 2: Corporate and Other Laws
Part 1: Company Law and Limited Liability Partnership Law (70 marks)
Part 2: Other Laws (30 marks)
Paper 3: Taxation
Section A: Income Tax Law(50 marks)
Section B: Goods and Services Tax (50 marks)
GROUP 2
Paper 4: Cost and Management Accounting
Paper 5: Auditing and Ethics
Paper 6: Financial Management and Strategic Management
Section A: Financial Management (50 marks)
Section B: Strategic Management (50 marks)
Marks needed to Qualify Charted Accountant (CA)
There is a 30 marks MCQ for all Papers with no Negative marking.
Examination for Chartered Accountancy Intermediate Level are conducted each year in May and November.
A candidate can either opt to attempt for single or both groups in examination, however he can aim for All India Rank in the examination only if he attends and clears both groups at a time and is able to secure marks at top 50 candidates level attending from country.
An aspirant needs to get 40 percent minimum in each subject and an aggregate of 50 percent in all subjects, to qualify in the Intermediate examination. If a candidate appears for examination for both groups and if he is able to secure minimum qualified marks in all subjects in either groups or both groups but fails to get aggregate in any group than the same can be set off from the excess marks from other group. However, if still the marks are unable to meet the aggregate criteria in required group, than he is considered as fail for the group he is unable to secure the aggregate and needs to attend again.
Final Examination[edit]
The Final exam in Chartered Accountancy has 6 papers of 100 marks each, which are divided into three subjects in two groups. The exam duration for each subject is 3 hours. Duration of paper 6 is 4 hours.
GROUP 1
Paper 1: Financial Reporting
Paper 2: Advanced Financial Management
Paper 3: Advanced Auditing, Assurance and Professional Ethics
GROUP 2
Paper 4: Direct Tax Laws and International Taxation
Paper 5: Indirect Tax Laws
Part 1: Goods and Services Tax (80 marks)
Part 2: Customs & FTP (30 marks)
Paper 6: Integrated Business Solutions
All papers bear 30 marks of MCQ while Paper 6 has MCQ for 40 Marks.
Qualifying Marks
Examination for Chartered Accountancy Final Level are conducted each year in May and November.
A candidate can either opt to attempt for single or both groups in examination, however he can aim for All India Rank in the examination only if he attends and clears both groups at a time and is able to secure marks at top 50 candidates level attending from country.
Variety of topics like Ind AS, Forex, Derivative, Auditing Standards, Income tax act 1961 and GST Act are the part of CA Final Syllabus.
An aspirant needs to get 40 percent minimum in each subject and an aggregate of 50 percent in all subjects, to qualify in the Final examination. If a candidate appears for examination for both groups and if he is able to secure minimum qualified marks in all subjects in either groups or both groups but fails to get aggregate in any group than the same can be set off from the excess marks from other group. However, if still the marks are unable to meet the aggregate criteria in required group, than he is considered as fail for the group he is unable to secure the aggregate and needs to attend again.
The CA Exam registration at all levels remains valid for a specific period, during which the CA student needs to complete his/her required training as well as clear his exams. CA Final Exam registration is valid for 10 years.[6]
Examination[edit]
The Examination by ICAI at Foundation, Intermediate and Final levels are conducted two times in a year.[7]
Examination Fee[edit]
The examination fee for foundation course is Rs 1500. For both groups of Intermediate course the fee is Rs 2700, and for one group it is Rs 1500. For applying for Final group, exam fee is Rs 3300 for both groups and Rs 1800 for single group.[8]
Recognition[edit]
Chartered Accountants are eligible for courses to do Ph.D. in universities based in India, National Eligibility Test (NET) conducted by UGC and the award of Fellowship in Junior Research or Assistant Professor as the degree holders of Chartered Accountancy (CA) course are considered equivalent to Post Graduates by the UGC.[9][3] The unemployment rate of CA is 0% so every person who studied CA can be employed in India in MNC's like TATA,Wipro, etc.. and also in the Government Sector.
See also[edit]
References[edit]
- ^ "Ace your CA exams 2021 with these preparation tips, and dos and don'ts by an expert". India Today. 9 July 2021. Retrieved 5 June 2022.
- ^ "CA Day 2021: History, significance, launch of new ICAI app, its features and quotes". India Today. 1 July 2021. Retrieved 5 June 2022.
- ^ a b c d "How to become a Chartered Accountant: Two routes to follow after Class XII and UG". telegraphindia.com. 3 November 2021. Retrieved 5 June 2022.
- ^ "CAs are now equivalent to Post Graduates: How to become a Chartered Accountant". Hindustan Times. 18 March 2021. Retrieved 5 June 2022.
- ^ "How to become a CA: Course details, paper-wise preparation tips". The Indian Express. 9 March 2021. Retrieved 5 June 2022.
- ^ https://www.catestseries.org/blogs/ca-final-exam-registration-may-2023--process--fees---last-date
- ^ "ICAI CA May Exams 2022: Foundation, Inter, Final course time table released". Hindustan Times. 21 January 2022. Retrieved 5 June 2022.
- ^ "ICAI invites applications for May 2022 CA exam; apply at icaiexam.icai". Firstpost. 22 February 2022. Retrieved 5 June 2022.
- ^ "Those with certificates in courses such as CA and CS can now pursue PhD, teaching jobs. Here's how". Edex Live. 2 October 2021. Retrieved 5 June 2022.