In the month of July, results of the CA final examination
were announced. Only about 3.5% of students passed both the groups in the old
course, while the corresponding percentage in the new course was a little better
at 6.5%. There is great anguish amongst the student community on account of such
dismal results. Details of the recent results are given in the feature `ICAI and
its Members’ in this issue of the Journal. If the Institute of Chartered
Accountants of India were to publish statistics of students passing the final CA
examination within five years from the date of their enrolment to the course, it
will certainly be an eye-opener.
It is time that all of us take a closer look at the CA course
– its structure, entry requirements, education, training, examination system and
other aspects.
Over the last few years, many changes have taken place;
examinations have been renamed and eligibility criteria for the students
changed. CPT was introduced to attract young talented students to the course,
just as students take up engineering, medicine or law after passing the Higher
Secondary Examination. On one hand, we are asking students to join the CA course
after Higher Secondary level, while on the other, we seek recognition for the CA
course as equivalent to master’s degree for the purpose of doing PhD. One really
needs to decide whether the CA course should be placed as an undergraduate
course or a post-graduate course. Today, it is neither.
When CPT was introduced, it was expected that students will
give up their college education (or opt for a correspondence degree course) and
concentrate on CA. But that expectation has been belied, possibly due to the
uncertainty of passing CA examinations. So today the students attend (do they
really?) college, coaching classes and office and are also expected to study for
the examinations.
The International Federation of Accountants (IFAC), of which
our Institute is a member, through the International Accounting Education
Standards Board (IAESB), issues International Education Standards (IES) and
other documents on training for professional accountants. IES1 `Entry
Requirements to a Programme of Professional Accountant Education’ in paragraph 2
states, “The aim of this IES is to ensure that students hoping to become
professional accountants have an educational background that enables them to
have a reasonable possibility of achieving success in their studies, qualifying
examinations and practical experience period. To fulfil this requirement, member
bodies may require certain entrants to take pre-entry proficiency tests.” Does
CPT or the commerce education that is imparted today at the undergraduate level
ensure that the students have a fair chance of passing the final examination
within a reasonable period? The answer is in the negative.
Often, students choose their career based on the cost of the
course and monetary prospects rather than their aptitude. In courses which have
tougher entry points, generally only students with the right aptitude and
calibre enter and ultimately most of them taste success. An easy entry and
subsequent difficult examinations reminds one of Abhimanyu in Mahabharat, who
had the expertise to enter the battle formation of `Chakravyuha’ but did not
know how to exit. This is an injustice to students who join the course in a
herd, but even at the end of five years, are unable to clear the final
examination. It creates a large pool of disheartened and disillusioned youth
whose qualification is ‘CA fail’. This does not augur well either for the
society in general or students and the profession in particular.
Coming to the course content, one wonders if the syllabus has
become too unwieldy for the students to handle. Even if one presumes that
students do not refer to the bare text of various laws, accounting and auditing
standards, the amount of reading that is required is voluminous. A student
passing IPCC in the first attempt appears for the final examination within a
period of about 2 to 2½ years. During this period, he is serving articles and
possibly would have appeared for college examinations as well. Even with the
maximum available leave, can a student acquire the level of knowledge that is
expected to qualify as a CA?
Most professional courses have a semester pattern with
evaluation spread over the duration of the course. This may not be possible for
the CA course, but can we think of permitting appearing only for one group at a
time or modular examination with say two papers at a time? That may reduce the
burden on students. By giving an option of appearing for both the groups at the
final examination, we are abetting failure.
At the final examination, a large number of subjects require
expert level knowledge. Does the education and training imparted ensure that?
Even in the best law schools in India, what the students get is a solid
foundation in law to understand and interpret legal issues with core knowledge
of basic laws. While it is absolutely necessary that standards of the course
should consistently remain high, we need to be clear in our mind as to what we
mean by high standards. A student passing the final examination must have
knowledge of core subjects, analytical capability and high ethical standards;
and last but not the least, he/she ought to have developed the capacity to
learn. Framework to IES, in paragraph 21, states, “In a constantly changing work
environment, both learning to learn and a commitment to lifelong learning are
integral aspects of being a professional accountant.”
Today, for a chartered accountant, there are a large number
of career options apart from the traditional areas of taxation and auditing. One
may consider permitting choice of subjects at the final CA examination rather
than expecting the student to have expert knowledge in a large number of
subjects. In fact, many years back, the final examination consisted of three
groups and for one group, a student had a choice of selecting from three
combinations.
There are few things that students need to keep in mind.
Success in any examination requires comprehension of the subject, retention of
knowledge, recalling and applying the same and finally, the presentation. Most
students rely heavily on retention without giving adequate emphasis on the other
aspects. While retention is essential, it is certainly not sufficient.
At the same time, one wonders whether in an era where
information is just a click away, can we have open book examinations in some
subjects that will test the students’ analytical capacity and application of
knowledge? When Late Jal Dastur, CA, wrote papers consisting of case studies for
conferences, he would cite all the relevant sections of the Company Law and yet,
the case studies would be so interesting and challenging.
Students, today, have lost the habit of writing and therefore, the capacity to express themselves in the written form. Also, due to extensive use of computers, there is hardly any occasion for the use of a pen between two examinations. As a result, students are unable to complete the paper. Maybe, in future, some of the papers will be in the nature of multiple choices or online tests requiring little writing. But it is also a fact that in the commercial world, written communication has its own importance, whether one is making submissions to the tax authorities or writing a report in the corporate world. The scheme of Sunday Test Papers, with all its drawbacks, gave students practice of writing answers, kept the students in touch with the syllabus and ensured regular evaluation. It was in the interest of the students.
Students who take up engineering, medicine or law have the benefit of classroom training. Even qualified CAs need to attend CPE programmes. Is it fair to expect CA students to gain expert level knowledge with only self study? Examination results have demonstrated that coaching classes have not helped the students. However, we have done precious little to provide a substitute. With the advent of information technology, we should be able to provide students with structured online training and facilities to resolve doubts and queries quickly through the medium of the Internet and toll-free numbers. A modest beginning has been done with the launch of the CA Shiksha portal.
One aspect that has been ignored is the timely mentoring of students. All the principals have this duty toward their students. It is important that mentoring should include advice to move to an alternate career option at an appropriate time and not after valuable years have been lost after futile examination attempts.
I leave these thoughts with you.
