Full Form of CA – Chartered Accountant
The Full Form of CA is “CHARTERED ACCOUNTANT.” He is a legal account professional who looks after a firm’s accounts. He audits the account of a company and gives his advice on tax matters according to the country’s tax laws.
Table of contents
- A Chartered Accountant (CA) is a certified financial professional responsible for managing a company’s financial matters. They conduct audits of the company’s financial statements and provide expert guidance on taxation according to the prevailing tax regulations.
- To qualify as a CA, one must have a 10+2 background in commerce, followed by a B.Com, M.Com, or even a Ph.D. in Commerce. Successful completion of the national-level Chartered Accountancy exam is also required.
- Given the dynamic nature of regulations shaped by government policies, a CA’s role becomes crucial. Staying updated with the latest legal amendments is vital to effectively and ethically carry out their responsibilities.
Work of CA (Chartered accountant)
A chartered accountant is a respectable position in a company and has many responsibilities on his shoulders. Some responsibilities of CA are as follows:
#1 – Audit
The main responsibility of the CA is to audit the company’s accounts. In this process, he checks the company’s expenditure and income and prepares the balance sheet. The audit is required to know the profit and loss of the company. He is the final authority that verifies the company’s account and gives suitable remarks.
#2 – Liaison officer
The chartered accountant also works as a liaison officer between the company and the government. If a company is semi-governmental, CA prepares its balance sheet and informs the government department about that audit.
#3 – Tax laws
CA is a master in tax laws and knows every peculiarity of tax laws. He uses his knowledge and legal provisions to make the company’s income less taxable to maximize profit. There are various laws related to tax in all countries and India as well, so how to deal with such laws rests with CA.
#4 – Adviser
CA also acts as a tax-legal adviser to the company. He gave him valuable advice on the management of the company when the company was required. In some instances, when the company is fighting a tax suit, CA is the person who helps the company to tackle the case.
One who wants to become a CA should possess the following qualification:
10+2 in commerce, Bachelor in commerce (B.com), Master in Commerce (M.com), Ph.D. (Commerce), and should clear the national level exam of Chartered accountancyExam Of Chartered AccountancyCA exam conducted by ICAI (Institute of Chartered Accountants of India) is conducted for aspiring Chartered Accountants. The entire curriculum is divided into three level i.e. Foundation, Intermediate, and Finals. These exams are conducted twice a year. .
How to Become a CA (Chartered Accountant)?
The Way to becoming CA is hard but not impossible; one can become a CA if he has the zeal to become one. Aspirants of CA can start preparation at various stages of life. The qualification and other criteria are given below:
#1 – CA Foundation
This was when a person completed his senior secondary examinations and wanted to become CA. At this stage, he can enroll himself in CA institutes. In the foundation course, the subjects are quite similar to the 10+2 syllabus of commerce. It is the basic level of CA.
#2 – CA Intermediate
After completing the foundation course in CA, one has to enroll in the intermediate stage of CA. This stage is a bit hard because of all the new subjects, like company law. Aspirants get nine months to study after their foundation to enroll in the intermediate course.
#3 – Articleship Training
After completing the intermediate course, one has to enroll in the article-ship training, which provides real-time experience. In this training, candidates learn about the nature of working in CA. The plan behind this training is to get exposure to companies etc.
#4 – CA Final
It is the concluding part of the whole journey. Before coming to this level, two exams should be cleared by the candidate. These are GMCS and ITT. CA Final is the passport to the world of chartered accountants. The success rate of this last phase is very low because of the toughness of the exam.
Abilities of CA (Chartered accountant)
A CA should have the following abilities:
#1 – Intelligent
A chartered accountant should be intelligent and should have good knowledge of commerce and tax laws because this is the prime thing that makes him CA. His intelligence should reflect on the work.
#2 – Accountability
A CA should be accountable for his work. An accountable person is one who always shows dedication. This is the quality that reflects the nature and loyalty of CA toward his work.
#3 – High Moral Values
This profession requires high moral character because CA deals with money matters, and there is a high scope of corruption, etc. So a CA should be of high moral values.
#4 – Leadership
A CA is an officer-level post, and he has to deal with many problems in daily life regarding work; also, he has to pass an order to his subordinates, so leadership quality is very much required in the CA so that he can handle all problems easily.
#5 – Updated
Laws are different and are changed according to the government’s conditions and requirements. So a CA who is updated with the amendments in-laws is the best because he can not do justice to his work without updating his knowledge.
Salary of CA (Chartered accountant)
This profession is high-earning because it deals with the matter of money itself. So the salary is not barred for CA professionals. The expected salary is given below (per month):
- Beginners: 30k to 45k
- Experience (2-5 years): 55k to 70k
- Experience (5 and above years): 1lakh to 3lakh
We discussed all aspects regarding the chartered accountants above. But if we analyze everything, we find some problems in the system. Firstly if we talk about the success rate, we see that this is very less because students’ basics are not cleared. They spend lots of money on coaching institutes to crack the CA exam, which shows that our schools are doing nothing. Secondly, a CA whom we called care-taker of companies accounts for. He sometimes, for his motive or profit, does malpractice. Which is organized moral conduct? There are numerous cases where CA shows false balance sheetsBalance SheetsA balance sheet is one of the financial statements of a company that presents the shareholders' equity, liabilities, and assets of the company at a specific point in time. It is based on the accounting equation that states that the sum of the total liabilities and the owner's capital equals the total assets of the company. and gets its profit. Some companies also used CA to get rid of government taxes by providing him a bribe, which is also an unfair practice. All these things should be stopped. The government should appoint some officers or direct C&AG to check all companies’ records, even if it is private or semi-government, so tax evasion should be stopped.
Frequently Asked Questions (FAQs)
Yes, a chartered accountant (CA) career can be rewarding. CAs play a crucial role in financial management, audit, taxation, and advisory services. Their expertise is highly sought after in various industries, providing stable employment opportunities and the potential for career growth.
While the chartered accountant designation is not directly recognized in the USA, it is still valued. International equivalents like the Certified Public Accountant (CPA) are more commonly recognized. However, CAs can pursue further qualifications or gain experience that may allow them to work in the USA’s financial sector.
Chartered Accountants (CAs) and Certified Public Accountants (CPAs) are both accounting professionals, but they belong to different professional bodies and operate in distinct regulatory frameworks. CAs are associated with organizations like the Institute of Chartered Accountants of India (ICAI), while CPAs are associated with the American Institute of Certified Public Accountants (AICPA). The primary difference lies in the jurisdictions they are recognized in and the specific regulations they follow.
This has been a guide to the Full Form of CA, i.e., the Chartered Accountant. Here we also present all aspects relating to chartered accountants, including the qualifications of CA, the work of CA, the salary of CA, and the abilities of CA. You may also have a look at the following articles –