Are you a person who plans on becoming a CA professional? If yes, then read this article as the facts mentioned in the article could give you an insight into how to complete CA and become CA professional.
A Chartered Accountant is one of the most dignified and important qualifications and job field all around the world. While there are people who do not really understand what a chartered accountant does, it is not a simple job. A Chartered Accountant is professional accountants who are skilled, trained, and authorized to perform a large array of accountancy-related tasks in a business firm or any field. This includes auditing, financial advising, tax return filing, income tax calculation, preparing financial statement preparation, etc. The most important tasks of a chartered accountant include management accountant, applied finance, financial accounting, management accounting, and taxation.
While there was a time when students used to neglect CA courses as they thought it was difficult, but, today, the number of CA aspirants has skyrocketed. With the help of the facts mentioned in this article, you could plan your future.
How to become a Chartered Accountant –
To become a chartered accountant, the candidate must go through different processes. However, before, explaining the process. We will look into the basic criterion.
- The candidate who wants to become a Chartered accountant should first complete 12th.
- He/she must have passed 12th with at least 60% marks.
- If the candidate has already completed a UG course, he/she should have secured at least 55% marks in total.
Now, you know the basic criteria to be fulfilled to become a chartered accountant in India. So, let us look deep into the specifics.
- Also Read: Top 7 Best Accounting Courses In India
Five most important steps to becoming a chartered accountant in India –
Step 1: Register and attend the common proficiency test (CPT)
Step 2: First register for the CA foundation course
Step 3: After completing the foundation course, the aspirant should register for the CA intermediate course
Step 4: Once you complete the intermediate course, you should enroll in the articleship
Step 5: After you have successfully completed the articleship, you need to register for the CA final exam.
Step 1: Common Proficiency Test (CPT) –
The common proficiency test is an entry-level test for a chartered accountant course. While not all people could attend the exam, the aspirant needs to register and then attend the exam. Here is how to register for the test, fee, and the details.
CA CPT registration process:
Step 1: Visit the website mentioned https://cdn3.digialm.com/EForms/configuredHtml/1666/57499/Registration.html?action=newuser
Step 2: On the page, you would find a fill-up form. Fill in the details as requested and hit the login or register button.
Step 3: Now, on the next page fill in the payment details and pay the registration fee through Net Banking/Debit Card/Credit card/Rupay card.
CA CPT application fee:
The application fee for the CA CPT course is INR 1000 and for people outside India, the application fee is USD 300. The payment could be made online using Master, Maestro, Rupay, Visa, Debit card, or credit card.
CA CPT exam details –
CPT consist of two exam sessions and the exam has a total of 200 marks, 100 marks for each session. The candidate should complete each test session within 2-hours.
Session 1: This test session has a total two-section, A and B. Section A consist of a total of 60 marks question on Fundamentals of Accounting. Section B consist of a total of 40 marks questions on Mercantile laws.
Session 2: This test session also has a total of two sections A and B. Section A has a total of 50 marks from General Economics. Section B has a total of 50 marks from Quantitative Aptitude.
Step 2: CA foundation course –
The CA foundation course is the gateway to become a chartered accountant in India. A candidate who has completed and passed 12th could register and attend this course. However, if the candidate has already graduated from any course, then there is no need of registering and attending the CA foundation course.
The registration for the CA foundation course could be done in the same way as registering CA CPT. The registration could be done when the student is studying in 10th and could attend the exam only after completing the 12th. After registering, the applicant would get 4-months to prepare for the foundation exam, which would be conducted twice every year.
CA foundation exam fee:
The foundation course exam fee is around INR 1500 to attend in India and USD 325 to attend the exam in a center outside India.
CA Foundation exam details:
There is a total of 4 papers for the foundation course, the first two papers are based on accounting, business laws, and business correspondence and reporting. The third and fourth papers are based on business mathematics, statistics, business and commercial knowledge, logical reasoning, and business economics. The third and fourth papers would have objective types questions.
While there are only 4 papers in total, the 2nd and 4th papers have two sections. Second paper Section A based on Business law, section B based on Business correspondence and reporting. The fourth paper Part 1 based on business economics and part 2 is based on Business and commercial knowledge.
The candidate needs to score at least 30% marks in each subject to pass and need an aggregate of 50% marks to pass the course.
Step 3: CA intermediate course –
Once, the foundation course is completed and the exam is passed, the candidate is qualified to move to the next level. The intermediate course is the 2nd or 3rd stage of CA that all candidate needs to attend and pass. The CA intermediate course is the most important stage to attend and pass to become a Chartered Accountant.
The intermediate course has a total of 8 different subjects:
- Auditing and assurance
- Corporate and other laws
- Financial management and economics for finance
- Advanced accounting
- Cost and management accounting
- Enterprise information system and strategic management
CA intermediate course exam details:
The exam for the intermediate course is split into two groups. Each of the groups has 4 papers, so therefore, a total of 8 papers. Each paper has a total of 100 marks and 8 papers would aggregate to 800 marks.
Group 1 –
Paper 1: Accounting, max 100 marks
Paper 2: corporate laws and other laws, max 100 marks
The paper 2 is split into two sections, part 1 based on company laws 60 marks and part 2 based on other laws 40 marks.
Paper 3: Cost and management accounting, max 100 marks
Part 4: Taxation, max 100 marks
The fourth paper is split into two sections, Section A based on Income tax law 60 marks, Section B based on indirect taxes 40 marks.
Group 2 –
Paper 5: Advanced accounting, max 100 marks
Paper 6: auditing and assurance, max 100 marks
Paper 7: enterprise and strategic management, max 100 marks.
The 7th paper is split into two parts, part 1 on enterprise information system 50 marks, part 2 on strategic management 50 marks.
Paper 8: financial management and economics for finance, max 100 marks
The 8th paper is split into two parts, part 1 on financial management 60 marks, and part 2 on the economics of finance 40 marks.
The students who are at intermediate CA course need to attend a 4-week ICITSS training mandatory.
Step 4 and step 5: Articleship and CA finals –
CA Articleship: All those aspirants who have competed for the above three steps becomes eligible to register for articleship. It is not possible to bypass the CA articleship if he/she wants to become a Chartered Accountant. CA articleship is all about polishing the practical skills and knowledge of a candidate, in order, to become a chartered accountant. In fact, CA articleship is the last step before attending the final exam.
Even during articleship, the candidate should attend two exams. The first exam would be for 75-marks in the first year of articleship, the second exam would be conducted at the end of the 2nd year for 100-marks.
After undergoing 3-years of training or articleship. A candidate would become eligible for registering and attending CA final exams. Remember, training or articleship should be done under a licensed Chartered accountant and the candidate should submit the documents to prove the same. Without completing the training or articleship, CA finals cannot be registered.
CA finals –
When it comes to CA finals, a candidate would have acquired better skills and knowledge from the AICITSS and training or articleship. Once you have completed all the 4 steps above, CA finals registration could be done.
For CA Finals there are a total of 13 exams to attend:
Paper 1: financial reporting
Paper 2: advanced auditing and professional ethics
Paper 3: corporate and economic laws
Paper 4: strategic cost management and performance evaluation
Paper 5: strategic financial management
Paper 6A: risk management
Paper 6B: Financial services and capital markets
Paper 6C: international taxation
Paper 6D: Economic laws
Paper 6E: Global financial reporting standards
Paper 6F: a multidisciplinary case study
Paper 7: direct tax laws and international taxation
Paper 8: indirect tax laws
To pass CA finals, a candidate should secure at least 40% minimum marks in each subject and 50% aggregate marks.
Once you attend and pass the CA final exam, you would become a Chartered Accountant.