DEEP DIVE INTO CHARTERED ACCOUNTANCY (C.

A)

Chartered Accountancy or CA as it's more commonly known, is a qualification which deals with the financial aspects of a
business,including audit, taxation, financial and general management. Professionals who qualify in this course are called
Chartered Accountants or CA's. Some are engaged in public practice work, others work in the private sector and some are
employed by government bodies.

A chartered accountant (CA) is different from other accountants as he or she has completed additional education, as well as
a period of mentored work experience. Chartered accountants work in fields of accounting, including public,management
and government accounting. While specific job duties vary greatly within specific positions, many duties shared between
CAs include preparing financial reports and documents, maintaining records of investments and providing professional
opinions in regards to the fiscal decisions of the firm. In India,chartered accountants are regulated by the Institute of
Chartered Accountants of India.

Although there is a general notion that only students of commerce should pursue the CA course, however, being a very
practical course, CA has also been pursued by the students from science and arts streams too. Students of science and arts
stream have to make extra efforts in order to understand some complex accounting nuances and have to get basic
knowledge of various management topics.

CA is considered a comparatively tougher course because of its rigorous syllabus, various exams and a long duration.
Students should not only work hard but should also be consistent and patient in their studies to become a CA. The
minimum duration of the course is 4.5 years if a student clears the levels in the first attempt. It might take a bit longer if
he/she reattempts any of the modules within the course.

As mentioned above, the exams and other aspects of Chartered Accountancy are regulated and managed by the Institute of
Chartered Accountants of India. It 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.

Under the Scheme of Education and Training, a candidate can pursue Chartered Accountancy Course either through (i)
Foundation Course Route or (ii) Direct Entry Route.

1. Foundation Course Route: This route is generally followed by students who wish to take up the CA course after class 12.
Students who have appeared for class XII examinations can entry to the CA Course through this route.

Through this route the student follows the three tier route:

Foundation Course Route

1 Entry Level Foundation Course
Test
2 First Stage Intermediate
Course
3 Final Stage Final Course

During the CA Course duration, students are imparted technical skills through Integrated and Advanced Integrated Course on
 Information Technology and Soft skills courses.

2. Direct Entry Route: This route is generally followed by students who have completed their graduation or post graduation and
then wish to pursue CA. Such students follow a two tier structure of the CA course.

Direct Entry Route

1 First Intermediate
Stage Course
2 Final Final Course
Stage

Direct Entry Route can be taken by:

• Commerce graduates or post graduates with minimum 55% marks. It can also be taken by other graduates or post graduates
with a minimum of 60% marks.
• Intermediate level passed candidates of Institute of Company Secretaries of India and Institute of Cost Accountants of India.

In this section, we have focused on the pathway that students of class 12 follow to accomplish their dream of becoming a
Chartered Accountant. i.e the Foundation Course Route.

As stated earlier through the CPT route, students follow a three tier structure to complete the course. Ideally students
clearing all the three stages in the first attempt would take 4.5 years to complete the course. Let's look at the first stage of
the course.

Stage I- Foundation Course

This is the first stage for CA aspirants. The Foundation Course is a test designed on the lines of an entry level test for
engineering, medical and other professional courses. The Foundation Course is conducted twice in a year i.e. in November and
May.

In order to be eligible for the Foundation course, a student must have registered for the test and have appeared for the 10+2
examinations from any recognized board in India.

After getting registered for Foundation Course, students are also required to fill in separate application form for appearing in
Foundation Examination.

After registration the student has to complete four months of study period before he appears for the test. The candidates
must make sure that they register for the tests in time.

The deadline to register for the November session of examination they should register till 30th June. For the May session, they
should ensure to complete the registration till 31st December. This means that the student should complete 4 months of study
period before he appears for the Foundation Course.

Foundation Course registration is valid for 3 years, which means that students can attempt the Foundation examination for a
maximum of 6 times. It can be revalidated any number of times for further 3 years period by paying revalidation fee of Rs.
300/- or as decided by the Council from time to time

Pattern for CA Foundation Course

The Foundation Course has four papers. Paper1 and Paper 2 will be subjective type while Paper 3 and Paper 4 will be of
Objective Type. Negative marking for choosing wrong options is there in objective papers.

Papers of Foundation Course

Paper 1: Principles and Practice of Accounting

Paper 2: Business Laws & Business Correspondence and Reporting
Section A: Business Laws
Section B: Business Correspondence and Reporting
Paper 3: Business Mathematics and Logical Reasoning &Statistics
Part I: Business Mathematics and Logical Reasoning
Part II: Statistics
Paper 4: Business Economics & Business and Commercial Knowledge
Part I: Business Economics
Part II: Business and Commercial Knowledge

Scoring Pattern

Foundation Course
Paper Principles and Practice of Accounting 100
1 Marks
Paper Business Laws & Business Correspondence and 100
2 Reporting Marks
Section A - Business Laws 60
Marks
Section B - Business Correspondence And 40
Reporting Marks
Paper Business Mathematics, Logical Reasoning and 100
3 Statistics Marks
Part A: Business Mathematics 40
Marks
Part B: Logical Reasoning 20
Marks
Part C: Statistics 40
Marks
Paper Business Economics & Business and 100
4 Commercial Knowledge Marks
Part I - Business Economics 60
Marks
Part II - Business and Commercial Knowledge 40
Marks
Requirements for Passing Foundation Examination

A candidate is declared to have passed the Foundation examination, if he obtain at one sitting a minimum of 40% marks in
each paper and minimum of 50% marks in the aggregate of all the papers.

Stage II - Intermediate Course

This is the second stage of the CA course for students. On successfully completing the Foundation Course, the students need to
register for the Intermediate Course with the Board of Studies. Candidates through Foundation Route can opt for registration
for Group I or Group II or Both Groups of Intermediate. After completing 8 months of study period as on the first day of the
month in which the examination is held. They need to appear and pass either or both the Groups of Intermediate level.

Candidates of Foundation Route, who register for Intermediate Course on or before 1st March/1st September of the year
would be eligible to appear in the Intermediate Examination to be held in the following November/May.

The validity of the Intermediate course registration is 4 years which means the students have a maximum of 8 attempts to
appear and pass the papers of both the groups.

Pattern of the CA Intermediate Course

The subjects of Intermediate Course are classified into two groups. The students can study and appear in the Examination
group-wise or both the groups together.

Group I Papers -
Paper 1: Accounting
Paper 2: Corporate and Other Laws
Paper 3: Cost and Management Accounting Paper 4: Taxation

Group II Papers -
Paper 5: Advanced Accounting
Paper 6: Auditing and Assurance
Paper 7: Enterprise Information Systems & Strategic Management
Paper 8: Financial Management & Economics for Finance

Scoring Pattern

Intermediate Course
Group I Papers Marks Duration
Paper Accounting 100 3 Hours
1 Marks
Paper Corporate and Other Laws 100 3 Hours
2 Marks
Part I: Company Law 60
Marks
Part II: Other Laws 40
 Marks
Paper Cost and Management Accounting 100 3 Hours
3 Marks
Paper Taxation 100
4 Marks 3 Hours
Section A: Income-tax Law 60
Marks
Section B: Indirect Taxes 40
Marks
GROUP II PAPERS
Paper Advanced Accounting 100 3 Hours
5 Marks
Paper Auditing and Assurance 100 3 Hours
6 Marks
Paper Enterprise Information Systems & 100 3 Hours
7 Strategic Management Marks
Section A: Enterprise Information 50
Systems Marks
Section B: Strategic Management 50
Marks
Paper Financial Management & Economics 100 3 Hours
8 for Finance Marks
Section A: Financial Management 60
Marks
Section B: Economics for Finance 40
Marks

Requirements for Passing Intermediate Examination

A student may appear in both the groups simultaneously or in one group in one examination and in the remaining group at
any subsequent examination. He is declared to have passed the Intermediate examination, if

1. A student shall ordinarily be declared to have passed in both the groups simultaneously, if he
a. Secures at one sitting a minimum of 40% marks in each paper of each of the groups and minimum of 50%marks in the
aggregate of all the papers of each of the groups; or
b. Secures at one sitting a minimum of 40% marks in each paper of both the groups and minimum of 50% marks in the
aggregate of all the papers of both the groups taken together.

2. A student shall be declared to have passed in a group if he secures at one sitting a minimum of 40% marks in each paper of
group and minimum of 50% marks in the aggregate of all the papers of that group.

Stage III - CA Final Course

After successfully passing the Intermediate course (papers of both the Groups), the student can register for the CA Final
course.
 The CA Final course consists of two Groups, i.e Group I and Group II. Group I consists of four Core Papers and Group II consists
of three Core papers and one Elective Paper. Students have the option of selecting one elective out of the six electives at the
time of registration for the CA Final Course.

Conditions for admission to write the Final examination –

• He is registered for the Final Course;
• Has completed the Practical Training on or before the last day of the month preceding the month in which the examination is
to be held or has been serving the last six months of practical training, including excess leave, if any, on the first the month in
which the examination is to be held and
• Has successfully completed Advanced Integrated Course on Information Technology and Soft Skills (Adv. IT &MCS)

Validity: The CA Final course registration is valid for a period of 5 years. This mean that a student has upto 10 attempts to
appear and clear the papers from both the Groups. If a student fails to clear the CA Final course in these attempts, then he/she
has to re-register for the Final course again.

Pattern of the CA Final Course:

GROUP I: Papers
Paper 1: Financial Reporting
Paper 2: Strategic Financial Management
Paper 3: Advanced Auditing & Professional Ethics
Paper 4: Corporate and Economic Laws

GROUP II: Papers

Paper 5: Strategic Cost Management and Performance Evaluation
Paper 6: Elective Courses (One must be chosen)
Paper 6A: Risk Management
Paper 6B: Financial Services and Capital Markets
Paper 6C: International Taxation
Paper 6D: Economic Laws
Paper 6F: Multi-disciplinary Case Study
Paper 7: Direct Tax Laws & International Taxation
Paper 8: Indirect Tax Laws
CA Final Course
GROUP I: PAPERS
Paper Financial Reporting 100 3 Hours
1 Marks
Paper Strategic Financial Management 100 3 Hours
2 Marks
Paper Advanced Auditing & Professional Ethics 100 3 Hours
3 Marks
Paper Corporate and Economic Laws 100 3 Hours
4 Marks
 Part I: Corporate Laws
Section A: Company Law 70
Section B: Securities Laws Marks
Part II: Economic Laws 30
Marks
GROUP II: PAPERS
Paper Strategic Cost Management And 100 3 Hours
5 Performance Evaluation Marks
Part A: Strategic Cost Management and
Decision Making
Sub Part I: Strategic Cost Management
Sub Part II: Strategic Decision Making
Part B: Performance Evaluation and
Control
Sub Part I: Performance Evaluation and
Reporting
Sub Part II: Managerial Control
Part C: Case Study
Paper Elective Paper (One to be chosen)
6
Paper Risk Management 100 3 Hours
6A Marks
Paper Financial Services and Capital Markets 100 3 Hours
6B Marks
Paper International Taxation 100 3 Hours
6C Marks
Part I: Taxation of International
Transactions & Non-resident Taxation in 50
India Marks
Part II: Other aspects of International 50
Taxation Marks
Paper Economic Laws 100 3 Hours
6D Marks
Paper Global Financial Reporting Standards 100 3 Hours
6E Marks
Paper Multi-disciplinary Case Study 100 3 Hours
6F Marks
Paper Direct Tax Laws & International Taxation 100 3 Hours
7 Marks
Part I: Direct Tax Laws 70
Marks
Part II: International Taxation 30
Marks
Paper Indirect Tax Laws 100 3 Hours
8 Marks
 Part I: Goods & Services Tax 75
Marks
Part II: Customs & Foreign Trade Policy 25
Marks

Apart from clearing the above three levels of the CA course, the students are also required to fulfill and complete certain
other requirements like:

• The students should successfully complete Four Weeks Integrated Course on Information Technology and Soft Skills (ICITSS)
any time after registering for Intermediate Course but before commencement of the Practical Training.
• Register for Three Years Practical Training on passing either or both the Groups of Intermediate Course.
Successfully complete Four Weeks Advanced Integrated Course on Information Technology and Soft Skills(AICITSS) during the
last two years of Practical Training but before appearing for Final Examination.
• If a student appears for CA final examination after completing 2.5 years of practical training, then he/she needs to
complete the remaining 6 months of the practical training before becoming a member of ICAI.

Career Prospects:

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. A CA can either set up his own consultancy firm or
work for a company. Here are some job profiles for Chartered Accountants:

• Chief Financial Officers

• Finance Managers
• Financial Controllers
• Financial Advisors
• Financial Directors
• Auditors
• Finance consultants

The major areas of work for a CA are:

• Auditing
• Accounting
• Taxation
• Cost Accountancy
• Investigation (Finance)

Although CA itself is a highly recognized and admired profession, to stand unique there are a few other courses that can be
pursued after CA. The following are a few courses that can be pursued after completion of Chartered Accountancy:

• Diploma in Insurance and Risk Management

• Information systems audit
• International Trade Laws and World Trade Organization
• Management Accountancy Course
• Corporate Management Course
• Tax Management course
• Certified Public Accountant
• NSE's Certification in Financial Markets
• Certified Financial Planner
• Certified Internal Auditor
• Chartered Financial Analyst
• Chartered Global Management Accountant

CA is a highly rigorous and a very long course. Many a times, if students feel that they won't be able to make it, they choose
alternate careers available for them. While it's true that students should not lose heart if they fail, it's also essential that they
don't waste their time if they feel they won't be able to complete the course. Following are some alternate career options for
different levels of CA students.

Alternate careers for CPT students:

• A student can opt for undergraduate programmes in Business Management, Commerce and Economics
• A student can also take up other professional courses like Company secretary, Cost and Management Accountancy or ACCA
• Furthermore, a student can also opt for courses like Certified Financial Planner.
• A student can look forward for a career in Banking
• Or can also take up Law related courses

Alternate career options available for IPCC students:

• Students who discontinues the CA course at the IPCC level can join an audit or tax firm and gain experience in the fields of
finance and taxation and look forward for many better jobs
• They can take up other professional courses like Company Secretary, Cost and Management Accountancy, Certified
Management Accountant
• They can look forward for a career in Banking or take up law related courses or
• They can take up Undergraduate Courses and then pursue MBA or
• They can take up the Accounting Technician course provided by ICAI
 KEY TAKEAWAYS:

• Chartered accountancy is a professional course which basically deals with auditing and accounts. It can be taken by students
who complete class 12th. There are 2 ways of doing this course one is through the foundation course route and the other
through the direct entry route.
• CA course taken through the Foundation route has a 3 tier structure that is the foundation course, intermediate course and
final course.
• Foundation course is conducted every year in May and November for which the registrations need to be completed by
December and June respectively.
• Foundation course has 4 papers that have to be cleared in order to register for the second stage i.e. intermediate stage which
is the second stage
• Intermediate stage exams are conducted twice a year in May and November for which the registrations need to be completed
8 months prior to the month in which the student wishes to take the test.
• After successfully passing both the groups of the intermediate stage, the student can register for the final stage
• The student should have completed the Practical Training on or before the last day of the month preceding the month in which
the examination is to be held or has been serving the last six months of practical training, including excess leave, if any, on the
first the month in which the examination is to be held and should have successfully completed Advanced Integrated Course on
Information Technology and Soft Skills (Adv. IT &MCS)

End of the Section