How to become a Chartered Accountant?
Updated: Feb 2, 2021
If you are reading this, it means that you want to become a Chartered Accountant, but you are not quite sure how to go about it and what the steps and procedures are.
Don't worry, we are here to help you.
To start your CA journey there are two main paths that you can take. One is directly after 12th grade and the second one is after your graduation or post-graduation.
The first route:
To be eligible for the CA course after 12
The standard you have to pass 12th standard, your percentage does not matter. It does not matter if you are from science or commerce or arts background. Anyone who has passed out from 12th Grade is eligible to apply for the CA foundation course.
If you are reading this, you want to start your journey to becoming a CA, but you are not sure what the procedures are.
Follow these guidelines and go through this informative blog to seamlessly prepare for your CA exam.
There are two paths that you can take:
After graduation or post graduation
Junior College: The only criteria is that you need to pass from grade 12. The stream that you take does not matter and neither do your marks. If you have passed, you are all set!
After graduation or post-graduation: Graduates or postgraduates are exempted from the CA foundation exam. The criteria for graduates or postgraduates to directly appear for the CA Intermediate exam is to attain a minimum of 55% score in commerce. Whereas the other graduates or postgraduates need to score a minimum of 60% to be eligible to apply for CA Intermediate exam.
CA Foundation is your first step to becoming a successful CA. It is the first exam that you need to clear to begin your journey. There are a total of 4 exams that you need to take:
CA Foundation subjects:
Paper-1: Principles and Practice of Accounting.
Paper-2: Business Laws and Business Correspondence and Reporting.
Paper-3: Business Mathematics and Logical Reasoning & Statistics.
Paper-4: Business Economics and Business and Commercial Knowledge
After clearing these four, you complete the CA foundation course and move on to CA Intermediate. This level consists of two main groups:
CA Intermediate Subjects:
Paper-1: Accounting (100 Marks)
Paper-2: Corporate Laws & Other Laws (100 Marks)
Part I: Company Law (60 Marks)
Part II: Other Laws (40 Marks)
Paper-3: Cost and Management Accounting (100 Marks)
Paper-4: Taxation (100 Marks)
Section A: Income-tax Law (60 Marks)
Section B: Indirect Taxes (40 Marks)
Paper-5: Advanced Accounting (100 Marks)
Paper-6: Auditing and Assurance (100 Marks)
Paper-7: Enterprise Information Systems & Strategic Management (100 Marks)
Section A: Enterprise Information Systems (50 Marks)
Section B: Strategic Management (50 Marks)
Paper-8: Financial Management & Economics for Finance (100 Marks)
Section A: Financial Management (60 Marks)
Section B: Economics for Finance (40 Marks)
Post clearance of the CA Intermediate exam it is compulsory for the candidate to undergo training with members in practice, this is called articleship. Also, if a graduate candidate is exempted from the CA foundation he/she is eligible to directly apply for articleship and appear for CA Intermediate post completion of articleship for a minimum of 9 months. To apply for an articleship you have to clear at least one of the groups. Once that is completed you are eligible for the articleship. The articleship lasts a total of three years. 2.5 years into your articleship you can apply for the CA final exam. Before this, you also need to complete the second group.
The final stage of the CA process is the CA final exam. This exam consists of a total of 8 papers that you need to clear to become a CA.
CA Final Subjects:
The following 8 papers are divided into 2 groups.
Paper-1: Financial Reporting
Paper-2: Strategic Financial Management
Paper-3: Advanced Auditing and Professional Ethics
Paper-4: Corporate and Economic Laws
Paper-5: Strategic Cost Management and Performance Evaluation
6A/B/C/D/E/F are 6 optional subjects. The student has the liberty to choose either subject as his paper 6. It is an open book test.
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: Multidisciplinary Case Study
Paper-7: Direct Tax Laws and International Taxation
Paper-8: Indirect Tax Laws
The passing marks for the CA final exam is a minimum of 40% in each of the exams and an average of at least 50%.
Embarking on the CA journey is an important decision and you should stay confident and well prepared throughout. To earn success in your CA exam you need to work hard and always stay positive. Before making a big life decision such as this, do all the prior necessary research and educate yourself about everything CA has to offer.
AK's Commerce Academy wishes you all the very best in all your future endeavors!