The Institute of Chartered Accountants of India (ICAI) is trying hard to get more professionals into practise. “At present more than 80 per cent of chartered accountants are employed with some company or the other. Very few opt to take up practice. But the opportunities are opening up and we foresee a huge shortage of practising professionals,” Mr G. Ramasamy, Vice-President, ICAI said.
To get more candidates take up the CA programme, the institute is planning to conduct the CPT (Common Proficiency Test) exam every month.
“It will be an online exam. The candidates can go to the respective centre and do the exam and get the result almost immediately. Once he/she clears the CPT exam, they can register for article-ship and take up the intermediate and final exams.’
This will enable more candidates to take the CA course. The institute has tied up with Bharathiar University here to offer a programme for students.
The institute is also gearing up to reorient the examination system to test the application skills of the students. “CA students have always been good in theory. But there is huge demand for intelligent candidates and those capable of applying their knowledge efficiently. We have therefore planned to reorient the current examination system and correct the balance by emphasising more on practical application skills,” he said.
Further, to hone the skills and mould them into excellent professionals, the institute is planning to put in place regular classroom teaching at all important places under the aegis of Board of Studies. These classes would provide complete guidance and enable personal interaction between teachers and students. Applicability skills would be a thrust area and the study material revised accordingly.
I totally agree with the majority.
If something can be done and Fresher CA willing to practise are given a nominal work and sure basic earning, the entire structure will change and a huge number of Chartered Accountants will enter into Practise.
Wish our President think the same.
There is should be systematice and partial system of allocation of work and remmuneration bitween practising member. And regarding there should be pool system for this. as client should deposit fees in the common account so a standard of fees can be maintained.
sir,i think transfer ban is to be removed as after earning money from job and secure hisfinancial position he can shift back to apractice
Refix and monitor present limit of 45 Tax Audits. Club all audit and inspection functions of PSU and redistribute the work among members in a reasonable and proper manner. Articles should get training in three different firms for better exposure i.e. their should compulsory transfer after one year and rules should not made to protect big firms but should be made to ensure equal and fair distribution of work. Creating big brands with multiple partnerships should be banned. And branch audits of big companies must be given to local small firms having no relations with statutory auditors.Audit of other revenue streams like excise, vat, tds service tax etc should be introduced. Spread the work not only among all members but also spread the work through out the year and do not concentrate the entire work in small part of the year.
For ensuring that all cals will get work
There should be rotation of auditor after every 3 years compulsarily and same audit firm should not audit the same company for atleat next 25 years
So that everyone will get equal chance
Also icai should ensure that minimum recommended fees are collected by the members
Any firm charging less fees should be punished
Ca relative of prop. / partner / director should not audit the company
Concept of doing single work / assignment / audit in partnership should be introduced
Means two ca coming together only for single assignments and working together
They may be prop. but for doing big audit they come together
IF INSTITUTE will not pass more ca next 10 years. then majority of practitioner(old age) will be getting retired.and the responsibility of running profession in country will suddenly fall on shoulders of fresh CAs having little experience. . . that will make a danger to profession as whole
HI, EVERY ONE, THE PRESIDENT IS VERY RIGHT IN HIS BELIEF THAT THERE IS ACCUTE SHORTAGE OF CA IN PRACTICE BUT HE MAY BE THINKING THAT THE PRACTICE ALSO INCLUDE THE PRACTICE OF CARPENTER, WELDER, RICKSHAW DRIVER, PEUN ETC AS HE MIGHT BE WANTING THERE SHOULD BE CA EVERY WHERE YOU GO, EVEN AT THE CORNER OF THE STREET, THE STD BOOTH SHOULD ALSO BE OWNED BY A CA. THE IDEA OF MR.
PRESIDENT IS VERY GOOD.
ON SOME DAY GOD WILL DEFINITELY GIVE HIM SENSE AS WE THE SMALL PRACTITIONER ARE TOTALLY DEPENDENT ON GOD.
I really cant stop laughing on the dolorous condition of ICAI. Why does the institute president and its team think that increasing the students will solve problems. There are ample number of practitioners who are under undisguised unemployment(wearing masks of practitioners). Talking about corruption in CA practice I just want to say that its not the mistake of CAs or ICAI but our system has itself become like that. Without bribing none of the work can be completed asap. So to survive one has to adopt these corrupt means and those who become adept in this art not only survives but also thrives. The ICAI should instead learn a lot of lessons from the CFA Institute(USA). I have been with that Institute as well for quite a time now and it has impressed me beyond imagination. It does not run after students to undergo articleship but it says that if students adopt deceitful ways for articleship/training(dummy types) they will themselves suffer in the long run so they are risking their own lives by doing that. Their Professional Ethics is not taught in the final level of exams but rather they have made it a continous process(fix 10% in all levels). They test students on concepts they learn so unlike CA no one can pass exam by mugging up sections or laws or points(rattafication really doesn’t help in long run, its like eating and vomiting text book concepts for exams). But our dearest ICAI instead of learning so many lessons from CFA(USA) thinks that it is its biggest enemy (ICAI has even bought one standard in professional ethics against CFAs). Only because ICAI has got powers under statute its enjoying today else it would have been ruined itself y now the way its doing its operations. Anyways we as a member of CA fraternity should become part of ICAI and should uphold the name where ever possible from our side…
Fully agree with u…
Hi
Many views are expressed above, by some of my friends who want minimum work from ICAI. But we should understand one point if given a choice of treatement from a doctor of five years experience and nil experience we would go for experienced one. Similary ICAI doest want to loose its credibility by handing over great reponsibilty involved in signing the audit reports to a freshly quyalified CAs.
ICAI should instead concetrating on the growth of members should concentrate on continuty of CA firms by making mandatory to form LLP instead of individuals.Thereby the next generation joins an LLP and that person dont take pains for 5-8 year to establish a new firm.
This is a good idea to fill in the gap currently enjoyed b Big 4. They enjoy continuty in mid set of clients. They really show their expertise in the field by way of collective power of group of CAs.
We can end the era of Powerful Big4s by creating a large number of Indian LLP’s.
I fullly agree with the contentions of all the people who have given their comments above. TO add to the above view I think that people do not join CA practise not because they are incapable but because the whole system for alloting work to CA’s is based on seniority concept. The older the CA , the more partners who are FCA’s only will get the government work. In all the government tenders that are floated in market for CA work have requirements like 3 FCA’s , blah blah Income and blah blah Years of experience. And institute itself is aware that the old CA’s though they have experience (IN HOW TO PAY BRIBE & ALL) but do not have latest skills and are poorly updated(thanks to proxies in CPE seminars).And the newly qualified CA’s have capabilities, are energetic and cable of doing any work more efficiently but are devoid of the professional work. It is better if our prestigious institute ,if cannot allot work but provide atleast leads for all new CA’s equally and design tie up with departments or organisations for new ca’s only so that atleast new CA’s have chance to see opputunities available in market and the person with capabilities may win.
Those who are having other sources of income either personal/family can only start practice at early stage of life.Same also for those having good contacts.However CAs with middleclass background, and coming from non business household it is extremely difficult to start practice.Institute should take steps to make practice popular.
Institute should come with program excusive to ca in practice for first 10 years.
Provide solutions and ideas to earn for basic needs in initial practice.
allow him to part time work as coaching, partner in firm, and other business like setting up franchise etc for first 10 years etc to meet his needs.
Initiating with government to include more internal audit and tax related works exclusively for ca. cag/AG work outsourced.
Allocation of all work by Panel in area.
No tender or Private agreement by setting for Government department audit.
Increase in fees by Government and Banks. (Concurrent audit fees for Bank in 1997 was around 10000.00 same today).
Start GST Eduacation early give edge over advocates who hold majority of Indirect tax work.
Provide age of Retirement of OLD CA. AGE OF FIRM SHOULD BE at MAXIMUM EXPERIENCE OF SR PARTNER and not by when firm is established.
FREE ADVICE: DONT GO BY ICAI MEASURES FOR PRACTICE TO DECIDE WHETHER TO GO IN JOB OR NOT. IF U R READY TO RISK YOUR LIFE WITH MEAGRE REMUNERATION AND CORRUPT MEASURE FOR EARNING COME IN PRACTICE. COME IN PRACTICE IF U HAVE A BASE, ELSE FORGOT IT- NOONE WILL COME TO YOUR RESCUE AND AFTER SPOILING 5-7 YEARS WONT GET A GOOD JOB AT STARTING.
Conducting CPT monthly will not ensure that more CA will come in practice. If ICAI really thinks, there is huge opportunities for practicing CAs and in the same time, it finds shortage of practising CAs, it means there is something contradictory. After clearing CA, there is no path for opting practice. After qualification, family and even CA thinks to afford basic expenses so there should be some system in place to assign works to the new CA firm. Second solution, practice permit should be allowed to every qualified CA even when he opts for service. Service can ensure some fixed income and same time fresh CA can do some works, can develop infrastructure and after some time he can come in full time practice.
It’s very true that a fresh CA even if willing to go 4 practice could not because the percatage of results is very low at the same time when he clears the exam, time factors plays a role becaz of 1) Family responsibility
2) Social responsibility and pressure to settle in life all these issues are also responsible.
Now, institute is becoming humble when it knows there are more demand it realises that it has to produce more CAs and comming with such novel ideas at the cost of our profound profession.
Dear Sir,
Online CPT Exams exams that every month is not solution for the shortage of CA. The institute must create some minimum work for a fresh CA so that he/she can think of going into practice.
Dear sir,
please come to the ground realities.You may be associated with the big practising firm.Average senior chartered accountant is hardly meeting out his office and household expenses with great difficulty.
practising ca in india is worse than a clerk in govt job.
The monthly Exam will not solve the problem.The Practicing C.A. be encouraged to have partnership with other C.A.so that under one roof client can get all services. At present it is very difficult for any fresh C.A.to start practice as he may not be financaly sound to invest for new office, staff and all other requirements.Today even C.A.childern of practicing C.A. go for job
I do not think that the joining the CA course through CPT exam will make people to go for practice. It will be easier for students to join this course but stil it is very hard to complete this course because the type of mental pressure this course demands. After completing this course most of the people want to join Big Corporate Houses to get a big or in fact a dream salary. Nobody wants to go for practice. This will only increase the revenue of the ICAI and not the skills of the students which the corpoates expect from CAs.
The Qualified CA’s Prefers Job than Practice except few Professionals, this scarcity of practising Professionals is due to the Actions of the ICAI. How ICAI is responsible?. Simple as we all know there are huge requirement for CA’s for Practice and for Employment too, a guy who pursues CA is required more than 5 years to complete CA, though ICAI prescribe 3.5 years to complete this course, the engineering students starts earning at the age of 22 but think of CA Students, even at the age of 27 they could not earn for their basic needs instead they depend their parents.The Pass Percentage in all levels of CA Stream should be Increased.All students are preparing for exams effectively and they are presenting the exams well. ICAI plays a major role in every student’s life. If every CA Student qualifies in a correct age then their intension to practice is more than going for employment. This is Colletive response of our CA Professionals to reorganise our blind concept of pass percentage right from the Institute’s Origin. I agree few students at the early age they Complete their course, why cant all Students.All fingers are not equal in size. The Institute should decide at right time to increase pass percentage,rather than making more complications to students community. In India there are huge job for Practising CA’s. CPT exams on monthly basis will only fill the pocket of ICAI, this will not increase Practising CA’s.Think atleast twice not to complicate students community.
The Institute should on the contrary lift the license-permit-raj inflicted upon practising CA’s wherein not more than fixed number of audits are permitted to be done. There exists different ceiling limits for company audits and tax audits for whatever reasons it deemed fit but, and hereto, ICAI contradicts itself by not having any ceiling on VAT audits.
Instead of conducting the CPT Exams monthly, Institute should be careful for Articles, In Now a Days CPT Articles became a source of Cheap Labours, It seen in 50 % CA Firms, specially for PCC Scheme Students who have joined Articles after CPT.
Institute should issue a special guidelines for Working Conditions for Articles. So, that Articles can adopt a systamatic Approach towards work. Such practicle approach will create confidence in Student and then they will have a confidence for Independent Practice otherwise unorganised CA Firms will use them accordingly their requirements and students will not get perfect knowledge.
Increase in students will only increase the revenue of Institute.
There are some typographical error please ignore them.
Instead of increasing the number of students the institute should look into the matter that how the new practising CA could get work. Newly qualified CA working with company will easily get Rs. 3.5 lacs to Rs.4.00 lacs p.a as starting package but the old practising CA could not get this amount. Say a average fees a old practising CA could get is Rs.7,000/- thus total yearly fees comes to Rs. 2.10 lacs and further Tax Audit etc could fetch maximum 2.80 lacs. A practising CA could fetch this after 2-3 years of practice. Thus increase in CA students will only hamper the demand supply relationship in industry. The increase in number must be checked with quality of CA institute is releasing in the job market. By my opinion only Big 4 will be benefitted by the opportunity as new Practising CA will not get enough chance to show its caliber.
Thus instead of increase in students institute should focus that how a newly practising CA could get quality & respectful work.
Instead of incresing the number of students the institute should look into the matter that how the new practising CA could get work. Newly qualified CA working with company will easily get Rs. 3.5 lacs to Rs.4.00 lacs p.a as starting pacakage but the old practising CA could get this amount. Say a average fees a qualified could go is Rs.7,000/- thus total yearly fees comes to Rs. 2.10 lacs and further Tax Audit etc coulod get maximum 2.80 lacs. The incease in CA students will only hamper the demand supply relationship in industry. The increase in number must be checked with quality institute is releasing in the job market. By my opinion only Big 4 will be benefitted by the opportunity as new Practising CA will not get enough chance to show its caliber.
Thus instead of increase in students institute should focus that how a newly practising CA could get quality & respectful work.
I hope, the report includes those masquerading as CAs as well as those specialised in frauds who go underground (abroad) immediately after IT/CBI searches of their clients-as has happened in Ahmedabad only recently!
It is strange that, while honest practitioners are starved of work and even subsistence income, and only some ‘chosen few’ are flooded with work and can afford to cause serious damage to clients, ICAI talks of shortage of CAs! Most of the new CAs turn to “agency” business-i.e,. acting as bribe-carriers for the dishonest officers in MoC, Sales Tax, Income Tax, SEBI, etc., only because they do not get respectable work from possible clients. There are CAS who, due to their permanent contacts in the MoC for decades, their “hold” over corrupt officers (photographed at various places), their “contacts” go to the top of the world from nothing to the top of the world-and hundreds of CAs just survive.
Fie on the ICAI !!
I seriously doubted, whether admission to CPT will ensure more CAs opting to go in practise.
ICAI wants to earn more money that’s it. Why don’t icai try and improve present infrastructure and remove transfer ban. They treat students as source of cheap and docile labour for their members.
There are many CA professionals who are forced to join the employement in some company in spite of the fact they are not remunerated sufficiently. In India, there are many professionals who want to be in practice but either due to their financial constraints, unfair competetion and dominance of big CA firms ,they are not able to survive and have to leave the practice. Institute must provide a sufficient and proper platform to new and small CAs for practice so that they may also show their skills and contribute to the profession.
The solution that has been identified is wrong in my view. The shortage of practicing can not be solved through ensuring monthly CPT. Instead steps should be taken to ensure that at least some minimum level of work is available to fresh CA who is willing to start practice. However,a fresh CA who do not have any links has no option left except going for a job with a company or a practicing firm. If institute can come up with some steps to allocate some work for new CA, then i can assure you that more CAs’ will opt for practice than job.