CA as a Profession.....
 

STRUCTURE

The Institute of Chartered Accountants of India periodically reviews the scheme of Education and Training to remain in tandem with developments in the field of education and other changes at national and global level. Evolving business also demands newer skills from the accounting professionals. Accordingly, the old scheme had been revamped and the new scheme had been designed and implemented.

 Different levels of Chartered Accountancy Course

     1. Entry Level Test : Common Proficiency Test
     2. First Stage of Theoretical Education : Professional Competence Course
     3. Final Stage of Theoretical Education : Final Course

The Entry level test is named as Common Proficiency Test (CPT) which is designed in the pattern of entry level test for engineering, medical and other professional courses. It is a test of 4 hours duration comprising of two sessions of 2 hours each with a break between two sessions. The test comprises of objective type questions with flexible negative marking for choosing wrong options. CPT had replaced the old Professional Education (Course-I) w.e.f. September 13, 2006.

The Professional Competence course with an upgraded syllabus had replaced Professional Education (Course-II) w.e.f. September 13, 2006.

The last leg of the Chartered Accountancy is Final Course, designed to impart expert knowledge in financial reporting, auditing and professional ethics, taxation, corporate laws, system control, strategic finance and advanced management accountancy. The Final (New) Course has been launched in February 2007

Updated syllabus is benchmarked to chartered accountancy courses available around the globe and is fully compliant to International Education Standards Issued by the International Federation of Accountants.

The old scheme of 3 years of articleship training had been replaced by 3 ½ years of training scheme.

Old 250 Hours Compulsory computer Training  had been replaced by New upgraded 100 Hours of Information Technology Training.

ICAI has launched a new curriculum shortening the course duration to 4 years and modernising the syllabus. The cream of the younger generation is showing overwhelming response to the new curriculum. The first CPT attracted about 28000 candidates who excelled as indicated by 66.3% result.

The steps involved to qualify as a CA by 21 years are as follows:

• Pass class 10th Examination.
• Register for Common Proficiency Test (CPT) with the Board of Studies of the ICAI.
• Simultaneously, pursue school education and appear in 10+2 Examination.
• Appear in CPT Exam.
• After passing Senior Secondary (12th or 10+2) examination and CPT, register for:
  • Practical training of 3½ years duration.
  • Professional Competence course
  • Information Technology Training
• Complete Information Technology Training of 100 hours before appearing for PCE.
• Appear for PCC on completion of 18 months of Practical training. PCC comprise of two Groups of three papers each.
• Undergo General Management & Communication Skills (GMCS) Course after 12 months of practical training and completion of PCC.
• Qualify in PCC and complete 3½ years of practical training to be eligible to appear in Final Examination.
• Appear and qualify the Final Examination, which comprises of two Groups of four papers each.

Enroll as a member of ICAI and choose to either join employment or set up an office of your own to practice.

EXAMINATION

The ICAI examination network has grown in size and stature since its inception in 1949 when about 450 candidates appeared in the first examination conducted by the Institute. Today, it is one of the largest among the accounting examination networks worldwide with about 110000 students appearing in the ICAI examinations which are held twice every year at about 174 centres spread across 105 cities in India besides, two centres abroad in Dubai and Abu Dhabi. The CPT examination is however held in June and December. ICAI is also lending its expertise in designing foolproof system of examination to accounting bodies in other countries.

CPE DIRECTORATE

In the complex and globalised economic environment it becomes evident for every professional to keep himself abreast of each amendment and all professional/technological changes taking place in their respective fields. The Continuing Professional Education Directorate of ICAI assumes the responsibility of updating the members on professional issues arising out of new legislation, technological changes and latest pronouncements of ICAI as well as other developments relevant to the profession. The modus operandi adopted in this regard is the holding of seminars/training programmes, conferences, publication of technical material, teleconferences etc.

With effect from Jan 2003, the Continuing Professional Education (CPE) has been made mandatory for members in practice. Commencing from January 2008, the requirements of CPE credit hours have been made mandatory also for the members engaged otherwise in practice.

POST-QUALIFICATION COURSES

In this era of liberalization and opening up of economy the world over, the need for a specialist cadre of professionals who have skill sets in specific emerging areas has assumed a wider significance. In order to equip the members with requisite expertise in these niche areas so as to enable them to render specialized services, the ICAI launched Post Qualification Courses. These courses are intended to equip the members with specialized knowledge to enable them to advise and assist service seekers in professional spheres to improve their operation efficiency and to bring about economy and growth all round. The ICAI provides an array of Post Qualification Courses to choose from to meet the requirements of the members in practice as well as in industry.

DISCIPLINARY MECHANISM

ICAI plays a pro – active role to ensure compliance of professional ethics and Code of Conduct in terms of the Chartered Accountants Act as well as various pronouncements issued by the Central council of the Institute. ICAI not only entertains complaints from Stake Holders / User Groups but also takes sup-moto action in cases which come to the knowledge of the ICAI through external information. The provisions contained in the code of conduct of ICAI are most stringent as compared to any other in the world and actions taken by ICAI against the defaulting members are also very stringent.

PEER REVIEW BOARD

The Peer Review is a mechanism to proactively pursue, upgrade and maintain the audit quality standards in India. It aims to maintains and enhance the quality of attestation services. The Peer Review Board was established in April 2002. The Statement on Peer Review (the Statement) was released in early 2002 which lays down the framework for conduct of Peer reviews by setting up the Peer Review Board (the Board) Peer Review mechanism covers all Practice Units or Chartered Accountants Firms / Members Practicing in Individual name in three stages with different types of practice units being included at each stage. The objective of the Review is to enhance quality of professional work and has no relationship whatsoever with any disciplinary or any other regulatory mechanism .

FINANCIAL REPORTING REVIEW BOARD 

The Financial Reporting Review Board ( FRRB) reviews the general purpose financial statements of certain enterprises and the auditor’s repot thereon either suo motto or on a reference made to it by any regulatory body(ies) or where the serious accounting irregularities have been highlighted by the media reports. In case the FRRB finds any material non-compliance and / or non-compliance affecting  the true and fair view of financial statements, with certain factors, it refers the case to the Director ( Discipline ) of the Institute for initiating action against the auditors, in so far as the management of the enterprise is concerned, pending the grant of relevant powers to the FRRB by the Government of India, the FRRB informs irregularity to the regulatory body relevant to the enterprise.

CAPACITY BUILDING BRANCH BUILDING MEASURES 

With the advent of globalisatiion and the challenges posed by the liberalization process taking place worldwide, a need was felt for consolidation of Chartered Accountancy Firms through Networking, Mergers & Demergers, corporatisation of Practice and formation of Multi disciplinary firms, ICAI has decided to allow Networking of CA Firms registered with ICAI and also to permit the members of ICAI to form multi disciplinary firms.

The newly constituted Committee for Capacity Building of CA Firms will work in this direction by addressing the conception and implementation issues at the firm level, popularizing the concept of merger in order to enhance the capacity of the firms. reviewing the progress of networking in the context of current rules and procedures and also suggesting ways and means of carrying forward consolidation and networking as well as the corporate form of practice by way of encouraging collaboration with the professionals / experts in the relevant fields.

E-INITIATIVES 

E initiatives are being implemented by ICAI to improve the delivery of information and services that involve the full delivery of services electronically. System integration is mainly occurring in the back office, with many e initiatives underway to improve internal systems. Some e initiatives have been implemented to provide front office integration of members and students with the Institute, with more being developed. E initiatives aim at improving back office operations including adopting standards towards greater interoperability as well as to improve the management of information with the Institute.

E initiatives categorized

The E initiative are divided into the five following categories. New of upgraded websites and intranets comprise the greatest number of e-initiatives.

Standards: At the technology level, projects to adopt or introduce common standards and processes for data, information and information projects. It includes virtual Institute Project, Human Resources Management System and e Learning project. 

Infrastructure: For Information Communication Technology (ICT) in house data centres with DR site for members and student services and examination results processing, corporate communication network and server farms.

Websites / intranets: Websites / Redesigned website www.icai.org, new PD portal www.pdicai.org, new CPE portal www.cpeicai.org, intranet and online complaint system for employees.

Web services: Initiatives include e enabled information and processes for members and students i.e. delivering services via the web to members and students and regulators such as RBI, CAG.

Internet transactions: Online payment of fees, online registration , online ordering of publications, online conference and seminar registrations, online multi purpose empanelment process etc.

ELECTRONIC INFORMATION EXCHANGE

It includes data and information exchange electronically with RBI, CAG & other regulators / banks. The data exchange questions were included because combining and exchanging information between different organizations is a component of the integration and Efficiency outcomes of the E governance strategy.

DIGITAL CERTIFICATION

ICAI has become India’s first educational institution to acquire Digital Certificate issuing capability as Sub Certifying Authority.

INTERNATIONAL INITIATIVES

ICAI is a founder member of various International professional bodies such as the International Federation of Accountants (IFAC) Confederation of Asian and Pacific Accountants ( CAPA ) South Asian Federation of Accountants ( SAFA)_ besides the International Accounting Standards Board (IASB) It has also become a founder member of the International Innovation Network ( IIN) It has played a prominent role in the International Bodies through its nominees who have worked and are working on the Governing Council as well as various Committees of those bodies.

ICAI is playing an increasingly proactive role in international affairs and has the International initiatives of the Institute focused towards the Institute’s avowed mission to render technical co-operation to countries which do not have a full fledged accountancy infrastructure. Such initiatives have had ICAI’s continuous technical cooperation to Institute of Chartered Accountants  of Nepal  for all facets of Institution building, Institute of Chartered Accountants of Srilanka in regard to Information System Audit programme and CPA Mongolia for programmes for convergence to International Standards.

The Institutes has also signed Memorandum of Understandings with Centre for Excellence in Research and Training, Dubai and College for Banking and Finance Studies, Oman for promoting ICAI’s assistance to them.

It continuous to be the permanent secretariat of South Asia Federation of Accountants an Apex body of SAARC.

ICAI PARTNER IN NATION BUILDING 

ICAI, as a part of its role in aiding pro active process towards better governance is called upon to interact with various regulatory / statutory authorities in India on issues of  interest touching upon the profession and otherwise.

The Institute, on its part, is putting the vast experience of its structure and its members at the disposal of those charged with governance. In this process, the Institute, at regular intervals, provides technical advice and necessary inputs to..

• Comptroller and Auditor general of India – Technical advice in response to references received including maintenance of audit panels, issues arising out of audit and accounts of government, companies and public sector undertakings. Besides, ICAI contributes by being part of C&AG initiative to bring reforms in Government Accounting.
• Ministry of Corporate Affairs – inputs in regard to matters relating to corporate laws and responds to the technical issues, by way of offering comments / views / suggestions etc. on receipt of relevant references. ICAI is actively contributing in company Law Reforms, Limited Liability Partnership legislation and e governance initiative MCA 21.
• Reserve Bank of India – Technical advice and maintains constant touch in regard to matters pertaining to bank audits and audit of non banking financial companies etc.
• Securities and Exchange Board of India – Maintaining constant touch and offers views / suggestions and also hold discussions in all matters touching upon the profession of Chartered Accountants. ICAI has been brining out publications on Capital Market Regulations and Clause 49 of Listing Agreement.
• Central Board of Direct Taxes – Actively associating in the process of formulation of budget by offering pre-budget and post budget suggestions / comments. Actively involved in offering suggestions to simplify tax laws and their administration for the purpose of making it more responsive to tax payers.
• Insurance Regulatory & Development Authority – Helping the authority in redesigning the format of accounts of insurance companies both in the life and non life sectors, and provides necessary inputs in response to references received.

Following the initiative taken by the Institute, more and more Departments of the Central and State Governments of the country are approaching ICA for utilizing the services of Chartered Accountants for advice on economy in expenditure, development of control mechanism over public funds, optimum and effective cost of funds.

In addition, ICAI also provides necessary inputs, from time to time, to the Trade Policy Division, Ministry of Commerce of the Govt. of India so as to enable the Indian Government to take part in a more effective manner in negotiations under GATS/WTO.