DETAILED PROJECT WORK

1.

Title of the Project Work

Chartered Accountant

CHARTERED ACCOUNTANT
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 Advisors 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
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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 recognized 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 practicing they should undergo a particular examination
conducting by the respective countries. The examination conducted by UNA is
called CPA, Certified Public Accountant Examination.
COMPETENCIES TO ADVANCE IN CAREER
The CA qualification process is designed to make sure you have the
opportunity to develop all the skills and abilities you will need to begin your
career as a CA. The process is based on professional competency that includes
a significant body of knowledge and the skills, values and attitudes needed to
analyze, synthesize and apply that knowledge effectively.
CA competencies are the specific skills you must perform at a defined
proficiency level and in a manner that reflects the professional ethics, skills,
knowledge and attitudes of a CA.
1. Pervasive qualities and skills which include:
Ethical behaviour and professionalism,
Personal attributes such as accountability, adaptability to change and the
ability to self manage, take initiative and add value; and
Professional skills such as communication, problem solving and
management.
These are the "Hows" of being a CA and all CAs are expected to bring
them to all their work.
2. The specific competencies - in six categories:
Governance, Strategy, and Risk Management
Performance Measurement and Reporting
Assurance

 Finance
Management Decision Making; and
Taxation

CAREER OPPORTUNITIES IN RELATION TO THE COURSE

YOU ARE PURSUING
Chartered Accountancy as a profession is attracting a lot of young and
witnessing a rapid growth, thanks to the growing corporate sector. Chartered
Accountants usually occupy high and respectable posts in a given organisation.
They are the ones responsible for handling accounts and finance related
matters, deal with money management, prepare, analyse and audit accounts
alongwith providing financial advice.
Only members of the Institute of Chartered Accountants can call themselves
Chartered Accountants, upon attaining the certificate from the Institute. Legally
only qualified Chartered Accountants are authorized to audit and certify a
company's books of accounts. They ensure that the financial transactions of an
organisation are maintained as per the guidelines laid down by the law. The
accounting department prepares, analyses financial reports and documents of
an organisation. Also they keep track of cost of management of the company
and manage tax matters. Later these figures and statements are examined,
verified and then certified by auditors.
Nature of Work
Chartered Accountants are generally found to be working either as employees
in a firm or they indulge in their private practice. The range of work in both the
cases depends on the size of practice. Some of the areas suited to the services
of Chartered Accounts are as follows

FINANCIAL ACCOUNTING: Maintaing financial records of an organisation

is of utmost importance. Financial accounting is a branch of accounting which
deals maintaining the financial records. It involves operating accounts,
interpreting, supervising, controlling and organising income and expenditure,
doing internal audits, dealing with wages and salaries, paying accounts and
sending out invoices, and coping with taxes etc.
AUDITING: One of the important tasks performed by Chartered Accounts is
auditing. It is the methodical examination and review of the accounts.
Chartered Accounts examine and verify the books of accounts and other
necessary documents of their employers or clients. On satisfaction, they issue a
certificate about the company's financial state. Auditing can be further
classified into sub-categories.
Statutory audit
Internal audit
Compulsory tax audit
Certification and audit
COST ACCOUNTING: Cost accounting deals with working out the cost of a
particular operation or job, taking into account relevant overheads. It is quite a
complex task usually undertaken for monitoring expenditure, preventing it
from over-shooting, minimizing costs, forecasting future needs and providing
reports for management accounting etc. It also helps in drawing comparisions,
analysing costs and explaining financial information.
TAX MANAGEMENT: Sometimes Chartered Accountants specialize in tax
management. Their job is to legally ensure minimum incidence of tax. In doing
so they have to cope with taxation laws and policies on national as well as
international scale depending on the kind of company they work for. Tax
management relates not only to direct taxes e.g. income tax but to indirect taxes
like sales tax, excise tax, agricultural income tax etc.
CONSULTANCY: The changing scenario in the business world has opened
promising and challenging career opportunities for the aspiring young.

Consulting services is one such opportunity which has drawn a lot of attention
these days. Chartered Accounts often indulge in providing these services in the
fields related to finance and accounts. They can effeciently provide services in
areas like corporate law advice, project planning and finance, investigations
relating to share valuation for takeovers, amalgamation, business advice,
secretarial work etc.
Personality
Accountants must have good numerical ability and analytical mind to interpret
facts and figures correctly. They should have logical and methodical approach.
Concentration and attention to detail are critical. As their work often relates to
discussing financial matters with number of people, sometimes with people
who don't have background in finance, they should be able to express
themselves clearly. This makes it imperative to have good understanding of the
subject with equally good verbal and written skills. Sometimes the work can be
extremely strenuous and exhausting especially during financial year closing, so
stamina both physical and mental with patience to handle such situation are of
added advantage. For accountants practicing privately, it is important to have
necessary business skills and shrewdness to generate clientele.
Professional Courses
Chartered Accountancy can be pursued after 10+2 or graduation. The whole
course can be divided into three stages i.e. Foundation. Intermediate and Final.
The following section gives information about them.
FOUNDATION: The Institute of Chartered Accountants of India offers CA
foundation course to students passing 10+2 in any subject. The duration of the
course is one year. On registration with the institute, students are provided with
the study material by the Board of Studies. Students have to complete their
study and clear the test papers under the postal tuition scheme. They also have
an option to attend contact classes organised by accredited institutions.
Students opting for these classes are exempted from taking the test papers
under the postal tuition scheme.

After 12 months of registration and satisfactory compliance with the

requirement of the Board of Studies, the Foundation examination can be taken
up. The examination is conducted twice every year i.e. in the months of May
and November. The course has four papers in the following subjects.
Fundamentals of Accounting
Mathematics and Statistics
Economics
Mercantile Law
After clearing the papers of the foundation course, candidates can register for
articleship (apprenticeship) under the practicing CAs or CA firms. Articleship
has to be done for a period of over 3 years. The training begins under close
supervision and later on, articles can manage bigger assignments. The purpose
of articleship is to impart practical training and exposure of the profession.
During the articleship, after 12 months, the articles can take up intermediate
examination. Articleship also includes a year of industrial training which can be
done in the last year after clearing Intermediate examination. After completing
articleship, seeking membership of the Institute is essential for practicing as a
Chartered Accountant. After 5 years of membership fellowship of the Institute
can be taken.
Many students prefer to pursue Chartered Accountancy professional training
and course after graduating. These students have to take entrance test in 4
subjects (Elements of Accounting, English, Mathematics and General
commercial knowledge and Economics). Graduates who have secured 50%
marks in subjects (Accounting, Auditing and Commercial or Mercantile Law)
are exempted from taking the entrance test. Other graduates with 55% marks
are also exempted from the entrance test. Rest all is same as those who have
taken the Foundation Course.

INTERMEDIATE EXAMINATION: Registered students who have completed

9 months of training as articled or audit clerks and have completed the
oral/postal tuition scheme imparted by the Board of Studies, are eligible to take
the Intermediate Examination. The Examination has the following subjects.
GROUP I: Accounting, Law, and Auditing
GROUP II: Cost accounting, Income-Tax & Central Sales Tax, and
Oganisation&Management and Fundamentals Of Electronic Data Processing
FINAL EXAMINATION: Students who successfully clear both the groups of
Intermediate Examination of the Institute and complete the prescribed period of
practical training (3years) or have yet to serve a period not more than 9 months
of such services can take the Final Examination. The Examination has the
following groups.
GROUP I: This group consist of the following subjects;
Advance Accounting, Management Accounting, Auditing and Company
Law
GROUP II: This group consist of the following subjects;
Direct Tax Laws,
Corporate Management, Secretarial Practice, Managerial Economics and
National Accounting
Operational Research and Statistical Analysis, System Analysis and
Data Processing, Costs Systems and Cost Control
Management Information and Control Systems, Tax Planning and Tax
Management, Management and Operational Audit.
Institution
CAREER OPPORTUNITIES
The profession of Chartered Accountancy is one of the most respectable
profession amongst the various others present in the commerce field,

particularly finance. A career in finance promises a challenging and extremely

rewarding professional life. On attaining qualification of a Chartered
Accountants, ample of opportunities open up. Whether they work in a firm or
they carry on with their own private practice, there is so much to do. Some of
the opportunities available for Chartered Accountants are in capital markets,
business houses and industry, consultancy firms etc. They are also engaged in
activities like preparing project reports, markets research, management
accounting, cost analysis, budget planning, working capital management,
inventory control, policy planning, securities consultancy, registrar of issues of
securities, auditing etc. With the country liberalizing its policies and approach,
opportunities are expected to grow further.
ABOUT THE ORGANIZATION
The Institute of Chartered Accountants of India was formed for the purpose of
regulating the profession of Chartered Accountants in India. The headquaters of
the Institute is at New Delhi and 5 regional offices at Mumbai, Chennai,
Calcutta, Kanpur and New Delhi. Apart from these their are 87 branches
located in different parts of the country. The Institute also has 9 Chapters
outside the country. The functions of the Institute are enrolment of eligible
members, engagement and training of articled/audit clerks, conducting
examinations, granting or refusal of Certificate of Practice etc.
2.

Reason for Choosing the Topic :

First Reason is for the partial fulfilment of the course and Second
Reason is I want to analyze the scope of Chartered Accountancy as a
Career.

3.

a.

Opportunity Name

Chartered Accountancy

b.

Opportunity is related to which Sector:

There is an equal opportunity for Chartered Accountants in

Private/ Public Sector. Chartered Accountant can also form their

firm for doing audits and Bank Finance.
c.

Who inspired you to collect information about this career:

My friend inspired me to collect information related to Chartered
Accountant. He was interested in known each and everything
about this career.

4.

Eligibility for giving CA Exam:

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 Common Proficiency
Test (CPT) 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.
Commerce graduates with 50% marks, non-commerce graduates with subjects
other than Mathematics with an aggregate of 55% marks and non-commerce
graduates with Maths with an aggregate of 60% marks are exempted from the
Common Proficiency Test (CPT) and are permitted to register for Integrated
Professional Competence Course (IPCC).
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 Professional Competency Course.
After passing Integrated Professional Competence Course, the candidates can
register as Articled clerks for practical training and for admission to the Final
course of the Chartered Accountant. Every graduate above18 years of age is
eligible to register as an articled clerk/ Audit Clerks for Chartered Accountancy.

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Computer Training Programme is compulsory for the candidates who wish to

register themselves as auditor clerk. They should under go 100 hours training in
Information Technology along with IPCC.
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.
5.

Extra Qualification for CA

Computer knowledge and working Knowledge of Internet is must for becoming

Chartered Accountant.
6.

Entrance Examination for CA

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 Common Proficiency
Test (CPT) 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.
7.

Challenges in Chartered Accountancy Career

As we are all aware the backdrop of the job market has changed in recent
times, presenting challenges to companies and employees alike. Now is the
time to take stock of where you are and where you would like to be in terms of
your career. You can then take the necessary actions to achieve your career
goals and ambitions.
Despite recent publicity about the rising level of redundancies, there is no
doubt that while jobs are being lost the overall level of opportunities available
to qualified Chartered Accountants is still encouraging.

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In challenging economic times our natural reaction is to be more cautious and

prudent. This can translate into a sense of inertia in relation to career
development as well as a reluctance to move roles because of feelings of
insecurity. Do not place your career development and progression on hold.
Continue to seek out new opportunities for a career/job change.
Obviously it is advisable to be more selective in terms of the companies and
roles you will consider. Be sure to research the company thoroughly and be
mindful of job security and long-term sustainability. It is during these more
challenging times that a strong qualification and continued training and
learning will benefit you.
Businesses will need talented professionals to guide them through a tougher
economic environment. There are a number of ways that you can improve your
career progression and development both in your current company and with a
prospective employer.
Improving job security
Take on additional responsibility that will add value in the business, even if the
areas are outside of your specific remit. Seek out areas that are being neglected
or where you see potential for growth, development, increased revenue and
ultimately profit.
Conduct a review of the organisation and know what the critical operations,
key performance indicators (KPIs) and issues are and what they are likely to be
in the future. This will offer you the potential to show the company how you
can add value and take on responsibility on your own initiative. It might even
result in a whole new role and career opportunity opening up for you.
Increase your visibility

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Ensure that you network within your organisation. Manage and communicate
upwards. Develop relationships with those in more senior-level roles. Volunteer
for and become involved in major projects asthis will help to increase your
profile. Drive the projects and take on a lead role. Demonstrate your ability to
take responsibility and to work on your own initiative. The more you raise your
profile with the management team, the more likely it is you will be recognised
for your contributions to the company. The company will also be very reluctant
to see your skills leave the organisation.
Communicate your value to management
During difficult economic times, the focus is very much on costs and,
unfortunately, increasingly on the payroll costs. When it comes to a choice as to
who will be made redundant the decision is often based on cost and value for
money. Employees who are adding value to the business will have more job
stability. If you don't make management aware of your contribution and how
this translates into the bottom line in terms of income or cost savings the
decisionmakers may not recognise your value when making cuts.
Job hunting
Due to recent changes in the job market, in some areas and levels there is a
greater supply of candidates than roles available. This is particularly the case
with senior- and executive-level roles. The result is a very competitive
environment where candidates have to be more strategic and creative during
their job search. Companies recruiting will be particularly selective and
considered in relation to their recruitment criteria. It is essential that your skills
and knowledge are up to date and that you are in touch with developments in
your area.

The recruitment process is also likely to take longer as companies are under
less pressure to make a decision. A process that might have previously taken 6

13

weeks may now take 8 - 10 weeks to turnaround. Where formerly there may
have been two interviews you may now have to attend a third interview.
Companies are likely to be more mindful of the costs associated with the
recruitment process and pressure may be exerted in terms of salary
expectations, especially in asituation where the candidate is not currently
working.
Salary structures
There will now be more focus on your performance in a role with KPIs, goals
and targets being agreed in advance. This may be reflected in terms of the
package on offer. A higher proportion of the overall value of the package may
be performance-related in the shape of a bonus structure. The base salaries on
offer may be lower but with a higher potential in terms of bonus based on your
achieving predefined criteria and overall company performance.
Positioning and branding yourself
In a more challenging market it is essential to position yourself ahead of the
competition, especially when you are being considered for senior level roles.
You need to be able to articulate what it is you have to offer. What is so unique
about YOU that an employer will want to hire you and retain you in the
business irrespective of their financial circumstances? At a certain level it is
assumed that you can prepare a set of accounts and manage the day-to-day
financials. You have to show where you can really add value from a broader
perspective. You need to demonstrate an understanding of the specific
challenges facing your sector. We all have something unique to offer. You need
to package this to develop a robust value proposition.
Think in terms of cost versus benefit.
Can you justify your salary and implement changes that will equal or be more
than your cost to the business? By proving your value to the business you will
be in a stronger position than others at your level.

14

In interview and in your CV provide examples of where you have demonstrated

your ability to add genuine value and a contribution to a business in the past.
Give details in relation to projects that you initiated and managed, outlining the
implications and benefits. Use metrics and statistics to reinforce your impact.
This helps your prospective employer to understand fully what benefit you can
bring to the business and that you are value for money. It is a numbers game!
With more competition in the market it is important to increase the level of
applications you are submitting. Ramp-up your activity in terms of networking
also. Talk to your peers to learn what is happening in your sector and what
roles and opportunities are currently in the market. Don't be afraid to make
targeted unsolicited approaches. Do your research in advance to ensure your
details reach the desk of the decision makers. Be sure to follow up any
applications you make. Master the balance between being persistent and
annoying.
Where possible, arrange a face to face meeting rather than communicating via
phone and email. This will afford you the opportunity to make more of an
impression.
Returning from abroad
When you have been out of the local market for some time you can lose touch.
It is important before deciding to return to get a full understanding of the
market and your position within it. Do your research in advance by contacting
fellow members and recruitment professionals specialising in your area. Know
your current market value in terms of salary and package and be sure to be
realistic.
If the experience you have gained has been very specialised ascertain if there is
an appetite for this skillset. You can then decide if and how to transition this
experience.

15

Location will also be a major consideration for you. Decide on where you
would like to be based when you return. The more flexible you are willing to
be, the more options will open up for you. Try, where possible, to make
yourself available for a face to face interview. A telephone interview will
generally suffice for the initial screening process but to land the job you will
have to be available in person. In some instances depending on the distance
involved it may be the case that you will have to leave your existing role and
come back to Ireland before securing another role. It may be a risk (although
calculated if you have done your market research) that you will have to take.
There is no doubt that we have entered a new phase in relation to the economy
with the knock on impact being on the level of opportunities available.
However, it is during such challenging times that a recognisedand respected
qualification will stand to you. Employers realise that they will need talented
professionals to guide their business to success.
To maximise your career opportunities and potential in this climate it is
essential to remain in touch with market trends and demands. Successful career
planning is an eternal exercise no matter what the economic climate. Once
employers recognise how valuable you are, recession or growth, they will want
you on board.

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FUTURE CHALLENGES
Dynamic Environment and Challenges to the Profession / Institute
UNRELENTING COMPETITIVE PRESSURE
The Changing nature of Competition
The Changing nature of Competition results in

New Entrants in Traditional Markets

New Specialised Organisations

Consequences for the Profession

To win business, the Indian Chartered Accountants will need to provide value added
services, which would help business become more competitive.
Industry specialisation and detailed understanding of clients' business will underpin
the ability to add value.
Competitors will no longer be restricted to accounting firms. Members will compete
in new market against other professional isciplines and accounting designation, where
CAs will be a minority.
For traditional (quantifiable) services - CAs will compete on price, for on-traditional
services - premium pricing will be possible.
Entry by new competitors will be facilitated by commoditisation of traditional
accounting services.
Consequences for the Institute
The Institute's culture needs to broaden its focus from traditional services (e.g.
Assurance).
The Institute will need to identify its core values and trends in a changing market.
It will need to re-appraise its relevance to CAs who compete against non-CAs
Members firms which move into non-traditional areas

17

CAs in consultancy - The benefits of a professional alliance with this group should be
considered
The strategies to progress specialisation will be required to add value to the C.A.
designation.
The differentiated CA positioning will be based on core values and ethical framework
and specialisation.
The Institute will need to recognise that it is a collection of individuals who are
competing individually.
COST MINIMISATION
Consequences for the Profession
The profession will use a competitive price model which is value based.
The demands to quantify benefits and link fees to benefits will increase.
Consequences for the Institute
The Institute will be required to adopt best practices and costs control.
OUTSOURCING - ONSHORE, OVERSEAS, INTERNAL
Consequences for the Profession
In the growing outsourcing sector, the new players may get fast entry into market by
acquiring traditional accounting practices.
The Indian Chartered Accountants will compete with/against other professionals in
the growing outsource market.
Outsourcing within firms (In sourcing - Internal centres of excellence) will increase.
Consequences for the Institute
The Institute will need to address the needs of a new/growing member segment, CAs
who provide outsourced services.

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SHORT PRODUCT CYCLE

Consequences for the Profession
Greater investment in R & D will be required to produce a growing umber of new
products and services.
The life cycle of the profession's products and services will be shortened.
The more sophisticated customer base will demand customised solutions and better
deals.
Consequences for the Institute
The Institute's product development cycles, (Specially Education Products) will need
to keep pace with new standards and changes in the market place.
PRODUCTIVITY
Consequences for the Profession
The profession will be subject to new productivity measures, which will include
responsible delivery time and value addition to business.
Consequences for the Institute
Faster, more responsive decision making will be required by the Institute of Chartered
Accountants of India, on many issues referred to it by the members.
NEW MEMBERS
Consequences for the Profession
The next generation of CAs will be less attracted to traditional accounting practice
and will seek employment outside public practice in non-traditional, entrepreneurial,
niche areas.
Consequences for the Institute
The Chartered Accountancy profession will need to be positioned as a pre-requisite
for professional credibility.
The Institute will need to attract new Members to the Profession to:
Counter the aging of the Profession.
Ensure there are sufficient numbers of small public practice firm.
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IMPACT

OF

INFORMATION

TECHNOLOGY

(IT)

AND

COMMUNICATIONS
REAL TIME FLOW OF INFORMATION
Consequences for the Profession

Significant resources will be required to develop the following technologies

which will be sought by CAs:

Electronic Networking/artificial intelligence system to interpret, model and

predict business trends.

The systems to deal with specific audit judgements (e.g. Stock Obsolescence,
Stock Option Valuation).

Integrated system to direct and reconcile transactions between trading

partners.

Low cost automated system will be sought to notify auditors of transactions to

be examined.

Consequences for the Institute

The Institute will have two options:
To adopt a leading role (Invest in R & D, Education and Marketing).
To leave it to the market to train the Members, develop the system required and so on.
GREATER SYSTEMS RELIABILITY
Consequences for the Profession

The system reliability assurance and data assurance will be growth markets.

The Accounting profession will be subject to increasing price pressure.

Consequences for the Institute

The need to observe the market and provide support accordingly.
The need to come up with standards to address the same.

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GREATER ACCESS TO TELECOM TECHNOLOGY

Consequences for the Profession
There will be an increasing demand for:

Services that share the reliability and security of information from electronic
sources (Web Trust).

End to end Certification of Transactions.

International standards will be required to cope with trans-national

corporations and increased international business activities.

Consequences for the Institute

The Institute will need to define the role(s) in this area. The options will be:
To lead standards setting.
To assist small practitioners who lack R & D capability in developing new services.
To leave it to the market.
THE VIRTUAL ORGANISATION
Consequences for the Profession
The following traditional accounting concepts will be challenged:

Performance and accountability - These will be more difficult to assess.

`A going concern' (The Virtual Organisation has no plan to be on going).

`An arms length transactions' (Transactions between members of Virtual

Organisation do not fit this concept).

Consequences for the Institute

The Institute will first need to understand the professional requirements of the
Virtual Organisation.

It can then promote its capacity to serve through the CA designation.

Virtual Organisation model will present the Institute of Chartered accountants

of India with new ways of conducting its business (e.g. Delivery of Education
Services).

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NEW WORK PRACTICES

Consequences for the Profession

Number of contractors and part-time workers will increase.

More flexible business models will be required.

More data will be stored electronically and with outside organisations raising
issues of security and electronic evidence.

Consequences for the Institute

The outsourcing of traditional business administration function will provide

new opportunities for the profession.

The growing of virtual firms will enable smaller firms to compete with larger
firms.

Larger firms will become service centers for smaller firms.

Firms will outsource work to each other.

GREATER ACCESS TO INFORMATION

Consequences for the Profession

The profession will need to develop system to cost effectively bring together
financial and non-financial data.

The demand for data assurance services will increase, representing new source
of revenues for Chartered Accountants.

The profession will need to develop direct relationships with information

consumers.

The market will need to be educated about the value added information
services, which CAs can provide.

CAs will be expected to quickly respond to the requirements of information

users.

The CAs will need to counter the perception that auditing impedes or sterlises
information from management and to re-position auditing as a value adding
information service.

22

Consequences for the Institute

The Members will seek the Institute's assistance in promoting the value added
information CAs can provide.
RAPID CHANGE IN BUSINESS ENVIRONMENT
Consequences for the Profession

The profession will need to become pro-active and agile to meet the rapidly
changing needs of business.

CA will need immediate access to new standards (e.g. via electronic systems) already available on ICAI website.

Industry specialisation will increase.

Partnering with other service providers will be necessary to deliver some of

the services required by business.

CA's will need to address complex accounting issues, such as, those relating to
off balance sheet arrangements, derivative instruments, etc.

Consequences for the Institute

CAs will have greater demands for training.

Members will need to be made aware of the changes in the business

environment and/of the associated threats and opportunities facing the
profession.

Members will need to be made aware of the opportunities and threats and
different technological advancement will present different sectors of the
profession.

The Institute will have the opportunity to position the profession as the leaders
in business technology.

The Institute will have the opportunity to lead in the developments of new
continuous auditing practices to address complex accounting situations.

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GLOBALISATION OF BUSINESS

Practices and Law:

Taxation Practices

Corporate Practices

Consequences for the Profession

Taxation professionals will require intra-national and international knowledge

of taxation law.

New accounting practices will be required if the US concept of taxing income

on a worldwide basis is adopted, subject to the application of double-taxation
treaties.

Demand for accounting services in the areas of tax avoidance/evasion and tax
havens will decrease.

Tax planning will focus on the narrowing opportunities of comparative tax

advantage.

Knowledge of international corporate law and precedents will be required.

Consequences for the Institute

The Institute will be relied on for high-level technical advocacy and leadership
with respect to taxation harmonisation and the harmonisation of practices in
corporate law.

The Institute will need to support CAs and business via Education and
Dissemination of the Information and advice.

The Institute of Chartered Accountants of India will need to develop

international specialised networks in tax and Corporate Law.

Need for Uniformity of International Accounting Standards

Consequences for the Profession

The profession will need to drive the adoption of one set of standards for
private companies.

The knowledge of both International and Indian Accounting Standards will be

required.

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The profession will need to reach the level where there is no difference
between internationally established and Indian standards, in view of the
International move to adopt International Accounting Standards.

There may be an attempt by the Government to adopt and/or nationalise

International Accounting Standards.

Consequences for the Institute

The Institute will need to take a pro-active role in international bodies and
forums to progress harmonisation.

The Institute will need to develop Accounting Standards for already identified
and new avenues. (i.e. fast development of Accounting Standards parallel to
IAS as well as new Accounting Standards as per the Indian market where
global players are active).

GLOBALISATION OF BUSINESS COMMUNITY

Consequences for the Profession

CAs will require detailed knowledge of international accounting and tax

systems.

Globalisation and liberalisation will impact on accounting firms in the same

manner as business.

The profession will be segmented into two groups - Those who are involved
internationally and those who are not.

Consequences for the Institute

The Institute will operate with the challenge of meeting the needs of disparate
Membership group.

Unless the Institute addresses the globalisation issues, it will remain relevant
only to those Members who operate locally.

Globalisation of Chartered Accountant programme will be essential for

Members who provide services to transnational clients/employees.

Changing

Attitudes

to

Work/Family

Environment( 3.7 )

25

Issue

and

Changing

Work

Demand for Knowledge based Workers(3.7.1)

Consequences for the Profession

Challenges to Indian CA will include:

Management of Information Technology.

Change Management

Workplace diversity

Education needs

Episodic career patterns

CAs will need generalist and specialist knowledge.

26

WORKING OF THE CHATERERED ACCOUNTANTS

Chartered Accountants are generally found to be working either as employees
in a firm or they indulge in their private practice. The range of work in both the
cases depends on the size of practice. Some of the areas suited to the services
of Chartered Accounts are as follows
Chartered accountants provide trustworthy information about financial records.
This might involve them in financial reporting, taxation, auditing, forensic
accounting, corporate finance, business recovery and insolvency, or accounting
systems and processes. Generally, they play a strategic role by providing
professional advice, aiming to maximise profitability on behalf of their client or
employer. They work in many different settings including public practice firms,
industry and commerce, as well as in the not-for-profit and public sectors.
In public practice firms, chartered accountants provide professional services to
fee-paying clients who might be private individuals or large commercial or
public sector organisations. In commerce, industry and the not-for-profit and
public sectors, they may work in treasury management, procurement, financial
management or in reporting roles.
Typical work activities
The role of a chartered accountant can cover many aspects of finance work,
including:
continuous management of financial systems and budgets;
undertaking financial audits (an independent check of an organisation's
financial position);
providing financial advice.
In public practice, typical work activities include:

27

 liaising with clients (individuals or businesses) and providing financial

information and advice;
reviewing the company's systems and analysing risk;
performing tests to check financial information and systems;
advising clients on tax planning (within current legislation to enable
them to minimise their tax liability) and tax issues associated with
activities such as business acquisitions and mergers;
maintaining accounting records and preparing accounts and management
information for small businesses (accountancy);
advising clients on business transactions, such as mergers and
acquisitions (corporate finance);
advising clients on areas of business improvement, or dealing with
insolvency;
detecting and preventing fraud (forensic accounting);
managing junior colleagues.
In commerce and industry, and the public and not-for-profit sectors, typical
work activities involve:
1. liaising with internal and external auditors and dealing with any
financial irregularities as they arise;
2. producing reports and recommendations following internal audits or
public-sector audits;
3. preparing financial statements, including monthly and annual accounts;
4. preparing financial management reports, including financial planning
and forecasting;
5. advising on tax and treasury issues;
6. negotiating terms with suppliers.

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7.

SUGGESTIONS:
1. Improve conceptual clarity, avoid rote learning You would be a more
confident person while facing the exam if you are thorough with the
concepts. However, if your conceptual base is weak and you resort to
rote learning, it would build up stress since you are not sure whether you
would be able to grasp the essence of the question paper.
2. Plan your study, avoid last-minute preparation - Plan your studies in
advance. Make a detailed time table and try as much as possible to
adhere to it. Procrastination always tends to build up stress. Remember,
if you fail to plan, you plan to fail.
3. Take short breaks while studying - Do not study continuously for long
hours at a stretch since you may not be able to entirely assimilate what
you have studied after a point of time. This is due to fatigue which sets
in after a certain point of time, indicating that this is the time to break.
4. Don't lose out on your sleep Do not stretch your study time by cutting
short your night sleep. It is very important that you have a good night
sleep for at least 6 hours so that you get rejuvenated in the morning for
the next day's preparation.
5. Think positive Avoid any sort of negative thoughts of not performing
well in the examination since this may affect your preparation as well as
your performance in the examination. Thinking positive will definitely
help you to adopt the right approach towards examination. When your
mind is at peace, without any anxiety, you would be in a position to
perform better.
6. Meditate and Exercise Relax by practising deep breathing, meditation
and yoga. Physical and Mental exercises will help to reduce stress.
7. Eat healthy You must stay healthy by eating good food and avoiding
junk. Do not skip meals for the sake of saving time for studying. It is
essential that you do not fall sick at the time of examination.

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ROADMAP OF THE CAREER

GRADUATION

CHARTERED ACCOUNTANT

30

ROADMAP FOR CHARTERED ACCOUNTANT

31

8.

Do you find difference in Classroom teaching and real life training?

Yes Real life work gives a broader way of thinking where one can utilize his /
her classroom knowledge in to work. Both real life work and classroom
lectures are found to be different.
9.

Learning from the above

Chartered Accountancy as a profession is attracting a lot of young and

witnessing a rapid growth, thanks to the growing corporate sector. Chartered
Accountants usually occupy high and respectable posts in a given organisation.
They are the ones responsible for handling accounts and finance related
matters, deal with money management, prepare, analyse and audit accounts
alongwith providing financial advice.
Only members of the Institute of Chartered Accountants can call themselves
Chartered Accountants, upon attaining the certificate from the Institute. Legally
only qualified Chartered Accountants are authorized to audit and certify a
company's books of accounts. They ensure that the financial transactions of an
organisation are maintained as per the guidelines laid down by the law. The
accounting department prepares, analyses financial reports and documents of
an organisation. Also they keep track of cost of management of the company
and manage tax matters. Later these figures and statements are examined,
verified and then certified by auditors.

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REFERENCES
-

www.icai.com

www.wikipedia.org

www.citehr.com

www.managementparadise.com

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