The Institute of Chartered Accountants of India
Date: 31st, May 2011
Draft Recommendations of the Group constituted to Review the Entry Requirement for Chartered Accountancy Course
REVIEW OF ENTRY REQUIREMENT FOR CHARTERED ACCOUNTANCY COURSE.
Proposal -I of Group of Council Members – Exemption to graduates/CWAs/CSs from appearing for Common Proficiency Test (CPT).
Recommendation of the Group of council members -
Common Proficiency Test (CPT) may be exempted for candidates who –
- are commerce graduates/post-graduates and have studied any three full papers of 100 marks each out of Accounting, Auditing, Law, Economics, Management and Taxation and passed the graduate/post-graduate examination by securing in the aggregate a minimum of 50% of the total marks.
- are non-commerce graduates/post-graduates who have passed the graduate/post-graduate examination by securing in the aggregate a minimum of 55% of the total marks in the examination,
- have passed the Final examination conducted by the Institute of Cost and Works Accountants of India or by the Institute of Company Secretaries of India, set up under the Cost and Works Accountants Act, 1959 (23 of 1959) or the Company Secretaries Act, 1980 (56 of 1980) respectively.
Views / Suggestions/ Comments :
While Commerce graduates, CWAs and CS should be exempt from appearing for the CPT examination, non-commerce graduates should be required to appear for it. This is because these candidates have not, in the course of their education, been yet exposed to concepts of Accounting, Auditing, Costing, Law, etc. As CPT Exam covers the basics of Accounting, Audit Law , etc., it acts a measure of the state of preparedness of the candidate and of his/ her aptitude for the CA course.
Proposal -II of Group of Council Members –
- Candidates who are exempted from CPT be allowed direct entry to articleship; or
- Enrolment to articleship after passing either groups of IPCC exam.
Recommendation of the Group of Council Members - Option (ii) is recommended.
Views / Suggestions/ Comments:
The Group of Council Members have opted for (ii) as they feel that option (i) would be unfair to CPT-cleared students. We have a different opinion on this. CPT exempt candidates are those who have acquired a qualification (B.Com/ CWA/ CS) and have studied subjects like Accounting, Auditing, Law, etc., and are thus well equipped to work along with an audit team as an Articled Clerk. Further, having graduated after a three-year campus/ classroom coursework, they are expected to have a certain level of knowledge and intellectual maturity that non-graduate (10+2 passed) students would not have. Requiring non-commerce graduates and 10+2 passed students to clear CPT ensures they acquire a certain level of knowledge of subjects like Accounting, Auditing, etc.; CPT exam. is thus a measure of the state of preparedness of these candidates for entering the CA course. Therefore, in our view, permitting commerce graduates, CWS and CS to directly enter articleship, while requiring other candidates (non-commerce graduates, 10+2 passed) to clear CPT is not unfair to the latter. We therefore strongly favour option (i).
Further, clearing IPCC should not be made a prerequisite for entering articleship. CPT exempt candidates already have theoretical knowledge, and will be able to integrate well with audit teams. CPT passed candidates would have also acquired sufficient theoretical knowledge in having prepared and passed the CPT exam.
We believe, articleship in an auditing firm (prior to clearing IPCC) supplement the theoretical knowledge with practical experience, and equip the candidate better to clear the IPCC exam.
Proposal -III of Group of Council Members –
Provisional registration for students pursuing graduation.
The Group felt that for attracting the students who are pursuing their Graduation course, students may also be allowed to register for IPCC Course provisionally during their final year of graduation. This was considered keeping in mind the fact that the graduate students are late entrants to the Chartered Accountancy course and should be given an opportunity to appear for the IPCC Examination as soon as they appear in their graduation course. All such students will have to undergo theoretical education for a period of 9 months as per the present scheme. But they should be allowed to register for articles only after submission of satisfactory proof of their having passed the graduation course and either of the Groups of IPCC Examination.
Recommendation of Group of Council members :
It was decided to recommend the students pursuing their final year of graduation, to be allowed for provisional registration to the IPCC course. All such students will have to undergo theoretical education for a period of 9 months as per the present scheme. But they should be allowed to register for articles only after submission of satisfactory proof of their having passed the graduation course and either of the Groups of IPCC Examination.
Views / Suggestions/ Comments:
We do not favour passing at least one group of IPCC being made a pre-requisite for articleship.
Additional suggestion/comment :
- By lowering the minimum requirement and permitting candidates who have passed 10+2 only ( and are not graduate) to enter the CA course, we feel the quality of students registering for the CA course has been compromised. We strongly favour graduation (BA/BSc/BCom) as a minimum requirement to the CA course. This is the case for CWA and CS courses; A three-year on-campus or classroom course during graduation imparts a certain level of knowledge and trains students in a disciplined manner. Further, graduates, being older than 10+2 pass students, would have acquired a certain level of maturity, analytical ability and a broader perspective, which the latter would lack.
- It is reported that while about 8 lakh students enrol for CA, a mere 25,000 clear the IPCC and become eligible for articleship. We believe permitting articleship before passing IPCC (1 or 2 groups) would serve two purposes – it would help the candidates integrate their theoretical knowledge with practical experience and be better prepared for the IPCCC exam and it would also help to reduce the acute shortage of Articled Clerks that Audit firms in India are facing.