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Chartered Accountancy: As a Profession

Posted on: 2014-10-08

CA is a prestigious, responsible and rewarding profession. It imparts the best combination of theoretical knowledge, practical experience with analytical as well as technical skill to look after the entire operations and management of the modern business organization. At present there has been rapid transformation in the scope of Chartered Accountants. Globalization, liberalization and revolution in information technology have totally changed the scope of CAs in financial reporting but other many areas.

Chartered Accountants, today hold top management position in public as well as private sector. By dint of professional qualification and specialized knowledge, the Chartered Accountants are rendering various types of consultancy services like formulation of profit planning programme, guiding the managerial decisions, feasibility studies, investment proposals, tax management consultants and so on. Apart from the traditional work of per forming various types of audit, many CAs are serving private and public sectors in the capacity of Chief Executive Officer, Managing Director, Finance Director, Chief Operating Officer, Internal Auditor etc. There is a sustained demand for qualified, trained and experienced Chartered Accountants day by day. Chartered Accountants are also holding key position in Government sector. Having vast and specialized knowledge in financial matter their services are recognized by the Government, Public as well as Private sector leading to placement at various level in the f i eld of accounting and management functions. Rapid changes in economy brought by globalization have further opened opportunities to the Chartered Accountants for many challenging and rewarding career options. Due to the increasing demand for their services, the average earning/ remuneration packages of Chartered Accountants has also steadily increased.

Association with International Professional Bodies

The Institute of Chartered Accountants of Nepal (ICAN) is the member of the International Federation of Accountants (IFAC), the Confederation of Asia and Pacific Accountants (CAPA) and the South Asian Federation of Accountants (SAFA).

Chartered Accountancy Course:

CA course is challenging. Based on distance learning module, it involves in depth theoretical education and practical training imparting sound analytical and problem solving skills to the students.

The course is divided into:

  • CAP - I - Six Months.
  • CAP - II - Nine Months.
  • CAP -III - Three Years (including practical training).

How to become a Chartered Accountant?

After taking the course offered by the Institute passing its final examination and acquiring three years practical training, one can become a Chartered Accountant and member of the Institute.

CAP-I Level:

This is basically for the students willing to enter in the professional CA course immediately after completion of higher secondary education (10 2, PCL, A Level or equivalent) The duration of CAP-I Level Course is one year.

Eligibility Criteria

The following are eligible to register for CAP-I Level:

  • Completed higher secondary y (10 2) or Certificate level or A level or equivalent examination from recognized Educational Institution.
  • Graduates/Post Graduates who have scored less than 50% in commerce and less than 60% in faculty other than Commerce and thus were ineligible to register directly in CAP-II Course (see CAP- II/Intermediate Level registration criteria).

Provisional Registration

Students those appeared for the final exam of 2 or PCL or equivalent and waiting their result may register their names provisionally.

The Fee Structure:

The total fee for the CAP-I Level course is Rs. 27,500.00. It can be paid fully at the time of registration or also on Installment basis.

  • Rs. 15,000.00 at the time of Registration and
  • Balance Rs. 12,500.00 within 3 months from the date of registration. The fee structure may changed on need basis bu the Council.

The Course:

The CAP-I level comprises 3 papers follows:

Paper 1 Fundamentals of Accounting 100 Marks
Paper 2 Mercantile Laws and Fundamentals of Economics 100 Marks
Paper 3 Fundamentals of Management and Commercial Mathematics and Statictics 100 Marks

Eligibility Test:

To be eligible to write final examination of the CAP-I Level, students are required to pass Eligibility Test as prescribed by ICAN.

Registration deadline:

The Summer Examination is held in the first week of June and Winter Examination in the first week of December every year. For appearing in Summer Examination, the registration must be completed on or before the end of November and for Winter Examination, on or before the end of May of the year. There should be time interval of at least Six Months between registration and appearance of the CAP-I Level Examination.

What after Completion of CAP-I ?

After successful completion of the CAP-I/Foundation Level, students shall enroll to the CAP-II Course.

CAP - II Level:

Eligibility Criteria:

  • Passed the CAP-I Level Examination, or
  • Be a Graduate or Post Graduate in Commerce, Business Administration or Management having secured a minimum of 50% aggregate marks, or
  • Be a Graduate or Post Graduate in other than (ii) above with a minimum of 60% aggregate marks.

Provisional Registration:

Students those appeared for the above mentioned final exam may register their names provisionally.

The Fee Structure:

The total fee for the CAP-II level course is NPR 30,000.00. It can be paid fully at the time of registration or also on Installment basis. The fee structure may changes on need basis by the Council.

  • Rs 15,000.00 at the time of Registration and
  • Balance Rs. 15,000.00 within six months from the date of registration.

The Course:

The CAP-II Level comprises 7 papers divided into two groups as follows:

  Group I     Group II  
Paper 1. Advanced Accounting 100 Marks Paper 4. Financial Management 100 Marks
Paper 2. Audit and Assurance 100 Marks Paper 5. Cost and Management Accounting 100 Marks
Paper 3. Corporate and Other Laws 100 Marks Paper 6. Business Communication and Marketing 100 Marks
Paper 7. Income Tax and VAT 100 Marks

Eligibility Test:

To be eligible to write the final examination of the CAP-II Level, students are required to pass Eligibility Test as prescribed by ICAN.

Registration deadline:

To be eligible to write the final examination of the CAP-II Level, students are required to pass Eligibility Test as prescribed by ICAN.

The Summer Examination is held in the first week of June and Winter Examination in the first week of December every year. For appearing in Summer Examination, the registration must be completed on or before the end of August of preceding year and for Winter Examination, on or before the end of February. There should be time interval of at least one year between registration and appearance of the CAP-II Level Examination.

What after Completion of CAP-II ?

After successful completion of the CAP-II Level, students shall enroll to the Final Level of the Chartered Accountancy Professional Course.

CAP - III LEVEL:

Eligibility Criteria:

  • Passed both groups of CAP-II Level Examinations.
  • Registered as an article trainee under a practicing Chartered Accountant by signing an Articleship Deed. It must however be noted that the Articleship Deed must be submitted to ICAN within one month from the date of signing the deed.

The Fee Structure:

The total fee for the CAP-III Level course is NPR 30,000.00. It can be paid fully at the time of registration or also on Installment basis

  • Rs. 15,000.00 at the time of Registration and
  • Balance Rs. 15,000.00 within one year from the date of registration in Final Level

The fee structure may changed on the need basis of the Council.

Articleship: Practical Training

During the CAP-III Level Course, student should undergo paid articleship for the period of 3 years as an Atricled Trainee under a practicing Chartered Accountant.

The Course:

The CAP-III level comprises 8 papers divided into two groups as follows:

 

  Group I     Group II  
Paper 1. Advanced Financial Reporting 100 Marks Paper 5. Management Information System 100 Marks
Paper 2. Advanced Financial Management 100 Marks Paper 6. Advanced Taxation 100 Marks
Paper 3. Advanced Audit and Assurance 100 Marks Paper 7. Advanced Cost and Managment 100 Marks
Paper 4. Corporate Laws 100 Marks Paper 8. Stategic Management and Decision Making Analysis 100 Marks

Eligibility Test:

To be eligible to write the final examination of CAP-III Level, students are required to pass Eligibility Test as prescribed by ICAN.

Examination Eligibility:

The Summer Examination is held in the first week of June and Winter Examination in the first week of December ever y year. For appearing in CA P-III/Final Level Examination a candidate must comply with the following conditions:

Two years elapsed from the date of registration in CAP-III Level. Passed the Eligibility Test Scheme. Completed the prescribed period of Articleship (3 years) or has yet to serve not more than 12 months of Articleship (practical training) prior to the first day of the month in which examination is held.

What after Completion of CAP-III ?

After successful completion of the CAP-III Level course, an Individual should apply for the membership with ICAN. Only those who are the members of ICAN can use the designation "Chartered Accountant" in full or "CA" in brief and can practice Accounting Profession after obtaining Certificate of Practice.

Scholarships

Scholarship Fund

ICAN has established a "Chartered Accountancy Scholarship Fund" in May, 2007. The scholarship shall be awarded to talents and poor students to pursue the Chartered Accountancy Education, who would other wise choose their career in other fields of study due to their poor financial condition.

Establishment of Scholarship Fund

The Scholarship fund can be established by an INDIVIDUAL or CORPORATE ENTITY in their name by depositing the following specified sum.

To establish a scholarship fund in the name of individual, a sum of Rs. 3, 00,000.00 shall be deposited in lump sum or on installment basis within a period of three years from the date of initial contribution.

To establish a scholarship fund in the name of Corporate Entity, a sum of Rs.5,00,000.00 shall be deposited in lumpsum.

If any individual or Corporate Entity instead of contributing the amount in the scholarship fund wishes to finance the students at various level selected by the Scholarship Selection Committee, then they can do so by depositing the required amount in the Scholarship Fund.

Scholarship Schemes

Following types of scholarship shall be awarded to the students.

Full scholarship, which includes complete waive of application, registration