Every new legislation, passed in this country in recent years, lays emphasis on the role of Chartered Accountants in the business world, and the responsibilities which Society expects of them to discharge. An example of this thinking of the lawmakers is the Companies Act, 2013, where the auditor is required to act as an expert, authenticating the correctness of the financial statements, a watchdog guarding the interests of the stakeholders and a whistleblower intimating the concerned authorities of a fraud. With all these onerous responsibilities, is a person who passes the final exam conducted by the Institute of Chartered Accountants of India (ICAI) equipped to deliver what Society expects of him? I understand that an overhaul/modification of the syllabus of the CA course is being contemplated by the ICAI. There would be a number of academicians who would be more competent to deal with this revision, yet I thought it necessary to bring to the fore some of the inadequacies that have crept into the course over a period of time.
Following the principle of “catch them young”, a student is able to harbour ambitions of joining this premier course immediately after clearing the 12th standard. At the time that he passes the higher secondary education examination a student is barely 18, and is therefore as mature as one can be at that age. He can then appear for the entrance examination and having cleared it, commence articleship to become a chartered accountant. Statistics will show that the entry point to the course is reasonably easy. Either on account of the entrance course content, or students having perfected the technique in that regard, students find it easy to pass this examination, but find the final examination significantly harder. Thus for this course, the entry point seems to be easier, while the exit is difficult. This unnecessarily permits entry to a large number of students, who then flounder when they reach the final frontier. We therefore hear a number of stories of students being frustrated, with the qualification eluding them.
Further, if after passing an examination of a particular standard which is the IPCC, a student is entitled to undertake articleship, one does not understand the logic of permitting one to start the course having cleared only one group. Once this happens, a student who is pursuing the graduate course as well as the CA course, falls between two stools creating unnecessary pressure in his career.
The initial concept of the course was that the course content would be supplemented by the on hands training that the student received while undergoing articleship. This was very true nearly 3 decades ago. Over a period of time the complexities of legislation, the variety of services that professional renders, and the consequent specialisation have limited the benefit that the training imparts. Undoubtedly it is of extreme significance, but in view of the fact that a Chartered Accountant will practice or work only in certain areas, there are gaps in the training that need to be filled in. Coaching classes are certainly not a substitute. Undoubtedly, they may assist the student being able to pass the examination easily, but they are not able to aid acquisition of knowledge. Given the fact that students from all state of society pursue this course, some degree of classroom support will have to be thought of by the Institute.
Coming to the course content itself, it appears that even the course requires significant modification. Firstly, considering the era of specialisation, students should be able to select some specific subjects. Further, some new subjects areas need to be looked at. Over the last two decades in the financial world, there have been significant advances and new products in the category of derivatives have been developed. To understand these models, quantitative analysis has to be factored into the course. Very rarely would one find a fund manager who is a Chartered Accountant. There are opportunities but our students need to be equipped with the requisite knowledge to exploit them. A significant population of professions practice in the Direct tax and Indirect tax field. Even those who join industry require this knowledge. One finds that in this regard, while the subjects of taxation undoubtedly form part of the course, the principles of interpretation are not given adequate importance. That is precisely why, most of our professional colleagues tend to interpret tax laws and regulatory laws in the same manner. The advice that they tender on the basis of such interpretation is often likely to lead the clients into a problem and consequently diminish confidence in the profession.
The profession has grown from being a backroom profession, to one where Chartered Accountants have to present themselves effectively. Communication skills were never the strength of our profession. This problem has been addressed to some extent by creating modules which the student has to undergo during his period of article training. However, there is still a long way to go in this aspect as well.
Finally, in regard to manner of testing the ability there needs to be a change. One finds that increasingly the test that the student undertakes is a memory test. Application of mind and interpretation skills are not tested to the extent necessary. I would believe that at least in regard to the core subjects, the manner of examination needs to change. In that light, in certain subjects one may even look at an open book examination.
I am deeply conscious that, those engaged in designing the curriculum at the ICAI would be well equipped to deal with some of the issues that are raised for they are wellknown. One also appreciates that one is dealing with an examination which is an all India examination and therefore to design a curriculum to suit all requirements is definitely a challenge. However, if one is considering a change, one should bear in mind all these aspects.
There is no denying the fact that the profession has a significantly important role to play. Those who pass the examination and thereafter enrol themselves as members of this august institution, deserve their place in the sun. It is necessary that the course they undertake equips them fully to meet the challenges that they would face.
