Wanna make your Signature worth more than an Autograph? Wanna become one of those whose signature is even required by Prime Minister? Then you’re looking for the right course. Chartered Accountancy (CA) is one of the most prestigious and challenging course, especially in India.
There is a myth in a society, that A CA just performs Audit and files Returns! Its scope is far more than this. Don’t underestimate CA course.
Institute of the Chartered of India (ICAI) is the body which governs everything related to the Chartered Accountants and its course. Members of ICAI that is CA have to pay a membership fee to ICAI each year for holding its certificate. There are two types of members:
- Practicing CA: Who are members of ICAI as well as holding Certificate of practice.
- Industry CA: Who are just members of ICAI and are in job in industry.
In members also there are two types of members:
- ACA: Associate members
- FCA: Fellow members.
Fees to be paid by a CA to Institute depends on the combination that he falls in.
Not everyone can put Prefix ‘CA’ before their names, for this prefix they have to clear CA exams. CA Course have 3 Level of exams. Lets discuss them.
CA Foundation or Common Proficiency Test (CPT)
When a student passes his/ her 12th or Senior Secondary from any board or stream and has scored more than 50% in aggregate. Or even if they’re in their graduation, they can enroll in the course by giving CPT or CA Foundation.
It is the also known as entry-level exam of CA course; it involves the quantitative aptitude test, general economics, mercantile laws and accounting.
For passing Foundation, a student needs to score 40% each subjects individually and 50% in aggregate. Like 40% in each law, eco, accounting and general aptitude and 50% in aggregate.
Then only, one can reach to next level that is Intermediate. It’s conducted twice in a year, in May and November.
CA Intermediate
After passing Foundation, student has to register with the Board of Studies for the Intermediate Course.
Then they have to complete 8 months of study course, which is divided in 2 groups and includes Accounts and Advance accounts, Corporate and business law, Cost, Financial Management and Economics, taxation and Audit and last but not the least Strategic Management and EIS.
Appear and pass in either or both groups of Intermediate Course, for passing Intermediate, a student needs to score 40% each subjects individually and 50% in aggregate.
NOTE- A student can enroll for CA Final only after passing atleast 1 group of Intermediate and completing ICITTS and Orientation held by ICAI.
CA Final
The CA final course is like river, it covers the advanced knowledge of financial reporting, management accounting, strategic financial management, professional ethics, information systems control and advanced auditing.
The students who had cleared their Higher Secondary can go for the foundation level test conducted by the ICAI. Then after passing the Intermediate, the students have to undergo the on-job training period of 3 years called “articleship” with an audit or accounts firm.
After they complete articleship, students can appear the final course. The GMCS (General Management and Communication Skill Course) is the 15 days mandatory training course introduced in 2003.
During the year of articleship students have to appear for MCQ test taken online after 1st and 2nd year from the commencement of articleship.
Note – A student can directly appear for Intermediate exam, if they are pursuing for course after completing Graduation with 50% and above marks.
After passing CA final, students will get ICAI membership and they will be declared a Chartered Accountant. The minimum time to complete the CA course is 4 years and maximum time depends on the attempt.
Now let me answer the most popular question, “What’s the scope of CA”?
Scope of Chartered Accountant
1. CA in Practice
CA can start their practice as an independent practitioner. It surely is an excellent option and rewarding in the long run. Income of practicing CA depends upon their network and as well as their expertise in the field. Alternatively, they can join an existing firm as a partner.
2. CA in job
CAs can go for Jobs with Government firms or big PSUs in their finance department. Via this route, they can expect a starting salary of Rs 3 to 8 lakhs, of course depending upon the organization and the position. In the private sector, Indian companies pay the Chartered Accountants around Rs 3 to 5 lakhs for entry level positions. On the other hand, private MNCs hire CAs on much higher pay scale i.e. Rs 7 Lakhs to Rs 15 Lakhs. Jobs can be also taken in banks, NBFC’s etc.
3. Entrepreneur
They can become a successful Entrepreneur by setting up new business or taking over the existing firm or become a partner or director in some.
A CA can enter any field except Engineering, Medicine! So don’t debar yourself by thinking that CA’s are made only for Audits.
The author of the above article is Sneha Bhalotia.
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