Does Chartered Accountancy remind you of something? Well, most of you might say – childhood. But you didn’t even know about the chartered accountant meaning at that point! Who can blame you, right? While growing up, children face the persistent question of what they want to become. Among all the career options, parents have the tendency to push their kids toward becoming doctors, engineers, or chartered accountants.
That is how most children develop their curiosity towards a respected profession like chartered accountancy. We all have once wanted to become one. But, as good as it may sound, the path to becoming a chartered accountant is pretty challenging. So, do you want to know how to become CA? The following guide will give you a comprehensive idea of everything related to the educational qualifications required to become a Chartered Accountant.
Let’s get started and see how to become CA.
Educational Requirements to Become CA
Bachelor’s Degree
1. Recognised bachelor’s degree in any discipline
An undergraduate degree in a subject covering accounting basics will help you become a Chartered Accountant. It gives a basic understanding of how to do accounting. Moreover, it teaches you how to manage money, learn about the economy, and run a business. Also, people who want to become chartered accountants need to finish a certain number of courses in accounting and auditing. They should also get hands-on experience through a recognised training program. Furthermore, they must succeed in tough examinations to get their title as a Chartered Accountant.
2. Preferred subjects: Accounting, Finance, Economics, or Commerce
Thus, you can become a Chartered Accountant with any bachelor’s degree accepted by the accounting organisation. But if you study Accounting, Finance, Economics, or Commerce, it’s like having a head start. These subjects teach you about money, business, and how to handle finances. So, when you work as an accountant, it’s easier to understand tricky stuff. Additionally, these preferred subjects make you more likely to do well in your job.
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Professional Qualification
- To get the title of Chartered Accountant India, people need to become Associate Members of the Institute of Chartered Accountants of India (ICAI).
- CA qualification involves passing through three levels of examinations:
a. Common Proficiency Test (CPT) or Equivalent
The first part is the CPT. It is also known as the Common Proficiency Test. It is an important test that assesses familiarity with basic accounting rules, trade laws, and economic science.
b. Integrated Professional Competence Course (IPCC) or Intermediate (IPC)
Following CPT, IPCC delves deeper into advanced accounting, law, ethics, taxation, and financial management.
c. Final Examination
So, anyone who wants to know how to become CA must understand the evaluation criteria in the final test. It usually evaluates students on their understanding of financial reporting, audit procedures, tax matters, and business legislation.
Let’s have a summarised look at the CA levels of examinations –
| Level | Examination |
| Starting Point | Common Proficiency Test (CPT) or Equivalent |
| Tests basic accounting, trade laws, economics, and numerical skills. | |
| Intermediate Stage | Integrated Professional Competence Course (IPCC) or Intermediate (IPC) |
| Covers advanced topics in accounting, law, ethics, taxation, and financial management. | |
| Final Stage | Final Examination |
| Evaluates comprehensive understanding of financial reporting, audit procedures, tax matters, and business legislation. |
Practical Training
- Mandatory practical training under a registered CA firm: Becoming a chartered accountant means being really good at managing money. It is also about helping businesses with their finances. To get there, you need to learn a lot about accounting. But it’s also important to get hands-on experience. This means working in a real accounting firm, where you can practise what you’ve learned. So, it’s like being an apprentice to a master accountant.
Now, by working in a registered firm, you get to see how things are done in the real world, solve real problems, and learn important skills. This practical training helps you become better at accounting. Moreover, it prepares you for a successful career helping businesses with their finances.
- Duration: 3 years of articleship: Additionally, during the three years of training, learners get to work with experienced professionals in an accounting firm. It’s like being in a special field where you learn how to handle money for businesses. You’ll get to try different things, like keeping track of money and checking if everything adds up correctly. Moreover, you will get an understanding of taxes.
You will also learn how to help businesses manage their money better. The skilled professionals you work with will be like teachers, guiding you and showing you the ropes. They’ll help you understand how to solve money problems and make smart decisions. By the end of the training, you’ll have learned a lot and be ready to help businesses with their finances, just like a pro.
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Common Proficiency Test (CPT) or Equivalent
Eligibility Criteria
- 10+2 or equivalent examination: Want to know how to become CA? In order to be qualified for the Common Proficiency Test there are important criteria. One thing is that they must complete their 12 from a board that is recognised. It is an important aspect to sit for the exam. Are you wondering why it is needed? It is needed because people sitting for the exam should have some basic understanding and knowledge. That acts like the first step of screening. Furthermore, without a basic understanding there is no point in sitting for the exam as it is very difficult anyway. This CA exam eligibility criteria shows that students have the skills needed to sit for the exam.
- Minimum 50% marks in aggregate: Also, a total score of at least 50% is required. This CA eligibility criteria creates a baseline for educational achievement and makes sure that applicants show an acceptable ability in different areas of study. This rule also helps in checking if candidates are prepared enough to face these tough tests.
| Requirement | Details |
| Chartered Accountant Qualification | Must have finished 12th grade or an equivalent exam from a recognised board. |
| Ensures applicants have the basic education needed to understand the field. | |
| Minimum Aggregate Marks | Need at least 50% total marks. |
| Shows acceptable ability in different subjects. | |
| Keeps standards high and ensures candidates are ready for the tough tests. |
Examination Details
1. The Common Proficiency Test (CPT) consists of four sections:
- Accounting
- Mercantile Laws
- General Economics
- Quantitative Aptitude
2. Every part has 100 points, so the whole exam adds up to a sum of 400 points.
3. Seeking the answer to the question, ‘how to become CA?’ The CPT happens two times in one year, usually in the months of June and December. So, it gives people who want to become Chartered Accountants two chances every year to take the test.
Exemptions
- Graduates with a minimum of 55% marks
Graduates who have scored at least 55% do not need to take the Common Proficiency Test. This rule acknowledges the scholarly skill of individuals who have finished their bachelor’s degree with admirable success.
- Other professional courses recognised by ICAI
So, individuals who have finished some professional courses that the Institute of Chartered Accountants of India (ICAI) acknowledges might not need to take the CPT. These exceptions recognise the similarities in course content and understanding gained from different professional certifications. Therefore, it makes it easier for those who want to qualify as Chartered Accountants.
Integrated Professional Competence Course (IPCC) or Intermediate (IPC)
Eligibility Criteria
To be eligible for the Integrated Professional Competence Course or Intermediate level, applicants are required to clear the Common Proficiency Test or a similar examination first.
Furthermore, they must also finish obligatory practical training. This training, which we call articleship, involves candidates working with a registered Chartered Accountant firm. Additionally, they gain experience in different areas like accounting, auditing, taxes and managing finances.
Examination Details
The IPCC, also known as the Intermediate Examination, includes seven papers. To be precise, every paper has 100 marks. Now, these papers are divided into two different groups.
Group I contains subjects like –
- Accounting, Law
- Ethics and Communication
- Cost Accounting and Financial Management
Group II involves learning about Taxation, Advanced Accounting, Auditing and Assurance, Information Technology and Strategic Management.
To be precise, the test happens two times in one year, usually in May and November, giving people a chance to show their understanding and abilities in the basic parts of accounting.
Final Examination
Eligibility Criteria
- Passing the IPCC or Intermediate (IPC) examination: To qualify for the Final Examination, applicants are required to have passed the Integrated Professional Competence Course or Intermediate examination.
- Completing the practical training requirements: Also, to be eligible, one must complete the practical training requirements. This includes compulsory articleship under a registered Chartered Accountant (CA) firm.
Examination Details
Once you have understood how to become CA, you must know that the Final Examination consists of eight papers, each carrying 100 marks.
To be precise, these papers are divided into two groups:
- Group I includes subjects such as Financial Reporting, Strategic Financial Management, Advanced Auditing and Professional Ethics, and Corporate and Economic Laws.
- Group II covers topics like Advanced Management Accounting, Information Systems Control and Audit, Direct Tax Laws and International Taxation, and Indirect Tax Laws.
The test happens two times a year, usually in May and November. Completing the Final Examination is like reaching the end of a tough path to becoming a Chartered Accountant.
Related: Chartered Accountant Job Description
Practical Training (Articleship)
Duration
The program lasts for three years. Therefore, this requirement makes sure that people have a basic knowledge of the topic before they start.
Eligibility
To be eligible, applicants need to have passed the Common Proficiency Test (CPT) or a similar test. This is the first thing you will come across if you want to know how to become CA. This means they are ready to learn the more complex things taught in the program.
Requirements
1. Training under a registered CA firm
People who want to become Chartered Accountants have to do practical training called articleship and it lasts for three years. To be precise, candidates who passed the Common Proficiency Test (CPT) or equivalent can take this training.
2. Exposure to various aspects of accounting, auditing, taxation, and finance
Also, the most important thing is that it gives candidates the chance to work in firms that are reputed. Therefore, they can get a proper understanding of essential things like auditing and taxation that are really important for their career.
3. Maintaining a diary of daily activities
One important part of the journey is that the candidates need to maintain a daily record of activities. This may not seem so important in the beginning, but it plays a crucial part. People need to keep a daily journal to write down the things that they learnt during the day. This helps to make sure that progress is taking place every single day.
4. Completing Industrial Training and other courses by ICAI
Moreover, people who want to become certified must also finish industrial training and take additional courses. It is required by the Institute of Chartered Accountants of India (ICAI). These courses add to hands-on training. They improve learners’ insights and understanding of specific topics in the accounting sector. So, it ensures that they are well-prepared for their upcoming positions as Chartered Accountants.
Soft Skills and Attributes
Also, besides knowing technical things, people who are Chartered Accountants must have many other soft skills that are very important for doing well in their jobs.
1. Analytical and Problem-Solving Skills
One of the most important things a CA should have is good skills in analytics. Thus, they should be able to come up with solutions to problems faced by a firm without any issues.
2. Attention to Detail and Accuracy
Furthermore, everyone has to be extremely precise with finances. So, Chartered Accountants need to pay very careful attention to every small detail of their tasks. They have the duty of removing mistakes from all financial documents, including statements and reports, as well as analyses. Moreover, they need to ensure that the financial documents meet the rules set by authorities.
3. Effective Communication and Interpersonal Skills
Do you know how to become CA? Well, you must have good communication skills. CAs often communicate with clients, colleagues, and stakeholders, which requires them to be very good at sharing information. They also need to explain money-related details in a simple way. Moreover, they need to change the way they talk depending on who is listening. They also need to coordinate with others in a group.
4. Leadership and Teamwork Abilities
As a reliable consultant, a CA in India usually guides groups or works together with experts from various backgrounds. Good leadership skills help them to encourage and influence people. So, it ensures that working as a team ensures smooth collaboration inside the company.
5. Integrity and Professional Ethics
Accountants deal with a lot of important details and data everyday. To be precise, that is the nature of their jobs. Now, if someone trusts you with their sensitive data it is important for the professionals to be moralistic and have good ethics. Furthermore, when working with such data the most important thing is to have professional ethics. To be honest, without it a chartered accountant cannot work in this field.
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Continuing Professional Education (CPE)
1. Importance of Staying Updated
In the current fast-changing business world, it is very important for chartered accountants to keep up with industry changes to stay significant and compete. They need constant education so they can know about new regulations and updates in accounting standards. Moreover, they need to know about tax law changes and technological improvements affecting their work.
Keeping up with current trends allows chartered accountants to offer knowledgeable suggestions. Furthermore, they are able to foresee possible difficulties. They are also able to modify their abilities according to changing needs.
2. Mandatory CPE Hours for CAs
The Institute of Chartered Accountants of India requires chartered accountants to complete a number of Continuing Professional Education hours in specific time periods to keep their membership.
How many CPE hours they need depends on things like how long they have worked and what special areas they focus on. Certified accountants need to actively participate in learning opportunities to gather the necessary continuing professional education hours and fulfil their regulatory duties.
3. Attending Workshops, Seminars, and Conferences
To fulfil CPE needs and improve their understanding, Chartered Accountants join different learning events like workshops, seminars, and conferences. These events provide chances to gain insights from professionals in the field. Moreover, these events help them share thoughts with colleagues and investigate new trends and recommended methods. So, when CAs go to these events, they meet their CPE obligations, too.
Career Opportunities for CAs
Chartered Accountants have diverse abilities which allow them to pursue many different job options in various fields. Now that you have learnt how to become CA, let’s look at the numerous career opportunities that are available.
1. Auditing and Assurance Services
CAs are very important in the auditing and assurance field. They check that financial reports are accurate and trustworthy. They also look at the financial records and evaluate how well the internal processes work. Moreover, they give useful information to stakeholders, including shareholders, investors, and regulatory authorities.
2. Taxation and Tax Planning
CAs are specialists in understanding tax laws and rules. So, they are very important for tasks related to taxation and planning for taxes. They also assist both people and companies in dealing with complicated tax structures. Moreover, they can help in reducing the amount of taxes they have to pay and making sure they follow all legal rules.
3. Financial Consulting and Advisory
CAs, due to their good understanding of finance and ability to analyse well, are very successful in giving advice on financial matters. They also offer important advice about combining businesses together. Furthermore, they can help change the financial structure of a company, manage risks, and grow the business.
4. Corporate Finance and Investment Banking
Additionally, a person who has studied chartered accountancy can be in demand for sectors like corporate finance and investment banking. To be precise, any high-profile job that needs calculating and making financial decisions will need the service of a chartered accountant. Furthermore, investment banking deals mainly with finances. Therefore, it always has a good demand for these professionals.
5. Management Accounting and Budgeting
CAs play a key role in the management accounting and budgeting tasks inside companies. They also create financial strategies and examine performance metrics. Furthermore, they support managers to make knowledgeable choices for reaching strategic goals.
6. Entrepreneurship and Business Leadership
Many Chartered Accountants use their knowledge to start their own businesses. These professionals might also use their degrees to rise to higher roles in existing companies. They have skills in finance, strategy, and leading teams. So, it helps them grow the business, bring new ideas, and achieve lasting success.
Conclusion
By now you must have understood what is a chartered accountant. Being a chartered accountant requires intense learning, hands-on experience, and continuous improvement in professional skills. CAs possess a versatile skill set, opening doors to various career opportunities in auditing, taxation, financial consulting, and beyond.
FAQs
Q1: What is the duration of the Chartered Accountancy (CA) course?
Ans 1: The course for Chartered Accountancy usually lasts about 4 to 5 years. So, it involves clearing the CPT. After that, it requires proceeding with either the IPCC or Intermediate IPC. Finally, it requires succeeding in the Final Examination.
Q2: Is it possible for me to take a course in chartered accountancy after I finish my studies in a subject that is not related to accounting?
Ans 2: People who have an official bachelor’s degree in a field can go for the CA course. But studying subjects such as accounting, finance, economics or commerce is better because they give you a good base.
Q3: What are the career prospects after becoming a Chartered Accountant?
Ans 3: Chartered Accountants (CAs) have many different career options available to them. They can work in areas like auditing, which involves checking financial records. So, these professionals will be able to make sure that the records are accurate. CAs can also work in taxation, helping individuals and businesses with their taxes.
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