| Chartered Accountancy has its own lure of professional growth and quick money. But it’s not acakewalk —exams are tough and the syllabus vast. Only the determined lot eventually sail through. Chartered Accountancy is mainly about accounting, auditing and taxation. A CPA is trained in various aspects of finance and accounting. Chartered Accountant helps businesses and individuals in tax planning and compliance. Styled as providers of complete business solutions, all of the various professional role is to ensure compliance with regulatory requirements, capital structure and planning, organizational development, implementation and preparation of feasibility study and project reports, the mobilization of financial resources, installation of internal accounting and budgetary controls for advice on issues such as joint ventures, foreign collaboration, consolidation, merger, diversification, commodity prices, BPO, etc.
EVERY STUDENT wants to be a top-notch professional by taking up a rewarding career such as chartered accountancy. But although the profession has always been among the most-favoured careers choices of students because of the lure of big bucks, not many recognise the bitter fact that there’s no easy way up. For starters, you have to clear three stages of examinations conducted by the Delhi-based Institute of Chartered Accountants of India (ICAI), the statutory body responsible for the regulation of the profession in India. The syllabus is vast and the examinations are tough. The pass percentage figures of the final exam are not very encouraging. But if hard work and determination are what you swear by, cracking the CA exams may not be a Herculean effort, after all.
The first step to this career is the Common Proficiency Test (CPT), which is held twice a year – June and December – in the paper-pencil mode; the online version of the test is held once in each of the remaining ten months. For this year’s first CPT on June 28, as many as 1,12,788 students took the test and of them, 37,808 cleared it, which means you could have a one-in-three chance of making its past the finishing line. The pass percentages of the online CPTs that were held in March, April and May were 55, 34.5 and 45, respectively. The next one is coming up on December 13 and you can complete the application process between October 6 and October 27. The future is entirely online “THE online CPT is now being conducted every month, except in June and December, when the paper-pencil test will be given. This will enable each student to take the CPT two times in six months – one in the online mode and another using pencil on paper.
The online CPT has just been introduced, so it will require some time to stabilise. It also takes time for students to accept the system. For these reasons, the institute will continues to hold the paper-pencil test for some time; in the foreseeable future, though, students will be able to take only the online test.
But before doing anything else, you’ll have to register yourself with the ICAI for the CPT, which you can take right after Class XII. There is no minimum requirement. You can appear for the test after 60 days from the date of registration and after taking Class XII exams. The CPT comprises four papers of two hours each — fundamentals of accounting (60 marks); mercantile laws (40 marks); general economics (50 marks) and quantitative aptitude (50 marks). The questions are of the objective, multiple choice type, and you’ll be penalised by a quarter of a mark for every wrong guess you make.
The registration and tuition fee is Rs 3,500, which you’ll have to remit along with the completed application form. Once you have registered with the ICAI, its Board of Studies will provide a comprehensive study package, including a substantive question bank. Remember, for the CPT, this is your Bible. The institute will also provide a CD for selfassessment. Using the CD, students can get question paper sets of different subjects and test 1.12 lakhStudents who appeared for the ICAI’s Common Proficiency Test on June 28. Of these, 37,808 cleared the test. 2 lakh Additional number of CAs that India will need by 2019. KPOs alone will require over 50,000 CAs by 2010.
NUMBER CRUNCHER Chartered Accountancy has its own lure of professional growth and quick money. But it’s not a cakewalk — exams are tough and the syllabus vast. Only the determined lot eventually sail through. their level of preparation. In addition, volumes I & II of the model test papers will also be supplied to students along with the study material. If you are in the capital and some designated cities, you can get the study material after you have submitted you application form. Those living in other cities and towns will get the material by post. So, you can start preparing for the CPT even as you’re getting ready for the Class XII exams.
What’s the next step after you clear the CPT? Once you do it and also clear your Class XII exams, you have the option of enrolling for the chartered accountancy course, which, in turn, is divided into two levels – Professional Competence Course and Final Course. You can, concurrently, train as an articled clerk for three years and a half, or complete an equivalent audit training programme. It’s only after the final examination that you’ll become a qualified chartered accountant. But this is only the beginning of a life’s journey in a profession that offers you opportunities to be an accredited accountant, authorised auditor, corporate caretaker, financial expert or tax specialist. Apart from rising to important managerial positions in top corporate houses, you can also set up a highly productive private practice at a later stage. Once you’re in, you can aim for the sky in terms of both money and professional growth.
Chances of upward mobility
WITH a starting salary of Rs 8 lakh a year, you can get as much as Rs 20 lakh within five years. We have also come across CAs who draw Rs 2 crore annually, said by one of the practising chartered accountant who heads his own firm. Depending on the city where you’re based, there may be initial teething problems in setting up a new firm of Chartered Accountants, but it is not an insurmountable hurdle. Members in the past have set up practices from nothing and these are today some of the renowned chartered accountancy firms.
The ICAI’s placement record also shows positive trends. In the Campus Placement Programme organised that was in March-April this year, the maximum salary secured by a student was Rs 23 lakh a year for an international posting. For the domestic sector, it was Rs 12 lakh a year. The average salary was Rs 6.06 lakh a year. “The money you can earn as you go up in life depends on the company and your individual calibre. There are CAs who are drawing several crores annually. So how does one prepare for the CPT? “Like any other entrance test for a professional course, the basic trick is to work hard. Regularity is important. It’s not like you study properly for one month and take a break in the next. Also, the professional exam is not about learning by rote. You’ve to master the concepts and update yourself on the latest developments around the world.
First, have a study plan in place IT is important to make a study plan and follow it in a disciplined way, advised Trainer of the Saket-based Institute of Commerce Studies, a coaching centre that trains CPT aspirants. “Students must be aware of the basics. You still have four months left for the CPT in December, so you have a lot of time to prepare comfortably. The coaching centre offers crash courses for CPT ranging from two to three months, with fees hovering in the region of Rs 7,500 to Rs 10,000. To go for this career, you need to have an aptitude for accounts and finance, a systematic and regular work culture, and the ability to be a team player. To be able to crack the CPT, each aspirant must first go through the ICAI study material very carefully.
Practise the illustrations and the model test papers thoroughly. Be confident and regular in your studies. Success will be yours in career in chartered accountancy. |
