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CharteredAccountant is a designation given to Accounting Professionals who become members ofthe Institute of Chartered Accountants of India (ICAI), by passing the prescribed examinations, threeyears of practical training (known as articleship) and fulfilling other requirements
A member of ICAI may either be an Associate Chartered Accountant (A.C.A.) or a Fellow CharteredAccountant (F.C.A.). An A.C.A can become a F.C.A. after 5 years of continuous service or practise.Further to engage in public practice, a CA has to obtain a Certificate of Practice from the Council ofICAI. Only members holding a Certificate of Practice may act as auditors or certify documents requiredby various tax and financial regulatory authorities in India.
Introduction to Chartered Accounting profession
Primary Role of a CA
Statutory Audits
Validation of financials as
per GAAP
Tax Audits
Ancillary Role of CA
Management Assurance
Risk Managament
Corporate Finance
Business Valuation
System Audits
Corporate Law
Forthcoming Roles
Social Audits
Audit of Government
Welfare schemes (NREGA,etc.)
Environmental Audits
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Skills and Certifications for business functions
Apart from the primary duties like statutory and tax audits, chartered accountants &
professionals holding certifications can provide services like system audits,management accounting, forensic accounting, fraud investigations, etc.
CISA (Certified Information System Analyst) certified professionals have expertise in ITSystem Audits
CIMA (Chartered Institute of Management Accounting) certified professionals providemanagement accounting services
CVIE (Certified Vigilance and Investigation Expert) certified professionals cater to frauddetection and investigations
CIA (Certified Internal Auditor) certified professionals can work on internal audits
CFAP (Certified Forensic Accounting Professionals) for Forensic Accounting
Cost accounting and control tasks can be completed by ICWA certified professionals
CFA (Chartered Financial analyst) perform Financial Advisory roles
FRM (Financial Risk Management) professionals work on financial risk analysis
With Chartered Accountants Qualified with these certifications, a CA firm can provideservices as detailed in the further slides
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Attestation Function
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Corporates have a statutory obligation to get their financials certified by getting them audited to establish theircorrectness. Chartered Accountants have statutory monopoly in audit of financial statements under the CompaniesAct, 1956, Income Tax Act, 1961 and various other statutes in India. Financial statements audited by a charteredaccountant are presumed to have been prepared according to GAAP in India
Companies require certificationsfrom CAs regarding specific
tasks in order to comply with laws
under companies act and otherregulations
Transfer pricing is a specialisedfunction revenue transfer amongbusiness units, which has tax
implications, thus requiringchartered accountants
A CA is responsible forauthorisation of the financialstatements which depict thewholesome financial situation ofthe enterprise for a particularperiod
Statutoryaudit
Certifications
Transferpricingstudies
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Management Audits
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Companies conduct internal audits of their processes, organisational functions to determine their effectiveness. CAfirms can deploy CAs and professionals with certifications like CIA to perform internal audits to evaluate policies,processes, controls, etc. to provide management assurance for the smooth functioning of the organisation
NightAudit
RiskBasedAudit
ScoreCard
IFRS
Night audit involves checking data flowand reconciliation between systems on adaily basis, at the end of day in order tocheck that all the revenues and expensesare properly posted in their relevantheads
Balanced Internal Audit scorecard is anaudit methodology of comparing prevalentpractices against managementexpectations and allocating scores basedon the convergence
Risk based Audit is a method to provideassurance that risks are being managedwithin the organisations risk appetite. A
CA studies processes to detectinefficiencies and unmitigated risks forOptimal utilization of resources
Companies having overseas subsidiaries
need to convert their financials to IFRSreporting format. And with the regulationsto be applicable in India, CAs have their
hands full in helping corporates converttheir financials to IFRS
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Risk Management
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Companies are exposed to different types of risks on a daily basis like market risks, operational risks, regulatoryrisks, etc. Risk Management involves identification & assessment of the risks, quantifying the impact of each risk,and developing mitigation strategies. CA firms can deploy CAs, FRM, CFAP and CVIE professionals for risk
management, forensic accounting, fraud detection to analyse different financial, regulatory aspects, market risksfrom investments, etc. and devise suitable mitigation strategies for the risks
TreasuryAdvisory
RiskAdvisory
Solutions
Regulatory&Compliance
Risk
Sarbanes-Oxley
Compliance
Risk advisory involves risk analysisfor every phase of a businessprocess and the corresponding riskfactors envisaged, which are dulystudied to generate a Risk MitigationReport
CAs study and implement safety
measures for the risk of non-compliance to applicable legal andregulatory requirements
It involves advisory on market risk,design risk management policiesand solutions, advise on accountingand regulatory aspects tocorporates and financial institutions
CAs can form sets of control
requirements to ensure financialreporting in accordance with SOXregulations
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Project Assurance Services
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Project assurance involves identifying activities that are critical for successful completion of the project, monitoringimplementation, cost controls, resolution of issues and risks that preclude successful delivery. CAs, ICWA
professionals can use their expertise for cost controls, process reviews, statutory compliances, taxation, etc.
ProcessReview
Audit ofproject
expenditure
Processmanual
Process review in project managementinvolves review of checks & controls inprocesses to ensure they follow theproject objectives & comply withapplicable regulations, taxationrequirements, etc.
Process Manuals are created or co-created by one or more authors, reviewedby other employees and ultimatelyapproved by a CA
CA is involved in rigorous planning &strategizing cost control measuresthroughout the implementation of theproject. It strives to reduce the risk ofdelayed implementation or failure of the
project
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Taxation
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Corporates have to fulfill a plethora of direct and indirect tax liabilities, ranging from income tax, sales tax, servicetax, excise and other duties, VAT, Corporate tax, MAT, etc. depending on the industry, which have to be filedappropriately at different times in a financial year. Chartered accountants are certified and able to manage acorporates tax liabilities appropriately
Direct
Taxation
Indirect
Taxation
Direct taxation includes auditing and filing for income tax, tax oncapital gains, corporate tax, minimum alternate tax, etc.
Indirect taxation includes auditing and filing for service tax, VAT,sales tax, customs, excise duties, etc.
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KPO
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Corporates outsource high end knowledge work like accounting, valuation, transfer pricing, research, etc. to KPOs
to save costs. Thus, KPO operations require thorough understanding of accounting, legal and technical aspects ofa companys operations. Chartered accountants fit the bill with their expertise in accounting and hold over
regulatory and taxation aspects
LegalServices
PreparingAccounting
Manuals
AssetsRecord
keeping &verification
ManagementInformation
System
Creditappraisal ofcustomers
Preparation of manualsfor financial reportingand linking expendituretypes to accounts
Designing complianceguidelines for legal andstatutory requirements
Checking the creditworthiness customersfor loan applications,etc.
Tracking andmaintaining records ofassets, depreciationcalculations, location,etc.
Involves maintenanceof MIS data
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Financial Advisory
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Corporates require quantitative financial analysis for making investment decisions, to determine optimum mix forraising funds (debt, equity), etc. A thorough hold over financial statements, reports, regulations, latest taxation andregulatory amendments enable Chartered Accountants to provide financial consulting and advise on regulatoryaspects and taxation impact for investment and financing options, thus helping companies factor in the tax impactfor all aspects of a transaction, minimise cost of funds, operate within the regulatory framework etc.
CorporateFinanceAdvisory
Transaction& due
diligenceServices
ValuationServices
Arriving at a fair value of a company based futurerevenue potential, market and competition, operationalhealth, assets and liabilities, etc.
Conducting due diligence of target company to determineorganizational and financial health, deal structuring in linewith agreed ownership pattern, etc
Consulting sevices to clients for investment and financingdecisions to maximise returns with minimum possiblerisk, raising funds with an optimum mix of debt and equityto minimise cost of funds, etc
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Business Advisory
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Corporates implementing strategic business plans need business advisory to aid decision making. CAs can use
their quantitative skills and expertise of financial statements and reports to simulate business scenarios, analysethe financial impact of different business structures, projects, processes, etc. and provide data backed reports toaid strategic business decision making
BusinessProcess
Re-engineering
ProcessConsulting
FeasibilityStudy
Analysis and evaluation of proposed projects todetermine financial, technical feasibility & profitability
Audit of processes for various organisational functions,implementation of policies and processes to ensureproper functioning of the organisation with theestablished controls
Analysis and design of workflows and processes tostructural changes in the organisation
C f f C
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IT Consulting
Corporates implementing IT systems, especially high end systems like ERP packages, need consulting forimplementation project management, post implementation system audit. CISA certified Chartered Accountantprofessionals can perform a crucial role in business analysis and designing the requirements for implementation of
IT systems. They can perform project management to ensure IT systems are implemented as per requirement, andfinally audit IT systems to provide assurance regarding system conformance and integrity
IT ProjectManagement
TechnologyConsulting
IT Assurance
Ensuring software or system implemented confirmswith the organisations objectives for the system
Advisory on the most suited technologies, softwarepackages and systems to suit the organisations
needs and objectives
Performs system audits to ensure proper systemchecks and controls, data security and integrity, etc.
C fid i l N f Ci l i
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CA firms with chartered accountants and professionals having certifications
like to cater all aspects of a business like cost control, fraud investigations,systems, etc. are well placed to cater to provide solutions for all businessneeds
A CA can be safely called a complete business solution provider
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CA A one stop shop for all business needs
C fid ti l N t f Ci l ti
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http://dget.gov.in/cirtes/csc/courses/Chartered_accountant.htm
http://en.wikipedia.org/wiki/Institute_of_Chartered_Accountants_of_India
http://www.thefreedictionary.com/chartered+accountant
http://icai.org/post.html?post_id=1817
http://en.wikipedia.org/wiki/Information_technology_consulting
http://pkfindia.in/services.htm#con
http://en.wikipedia.org/wiki/Management_consulting
http://www.investopedia.com/terms/s/statutory-audit.asp#ixzz1f4sRYqgM
http://www.answers.com/topic/tax-audit#ixzz1f4twstNW
http://www.tatacapital.com/TreasuryAdvisoryServices/TreasuryAdvisoryServices.htm
http://www.tallysolutions.com/website/html/charteredaccountants/ca-businessadvisor.php
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