The Institute of Chartered Accountants of India (ICAI) has proposed new Scheme of Education and Training in the year
Important Focus areas identified for Way Forward
- Requirement for change in manner of learning.
- Honing of Interpretational skills.
- Duration of the course.
- Internationalization of the CA Course.
- Futuristic outlook in the Scheme of Education and Training.
- Higher Degree of Industry Orientation. Integration of Ethics.
- Intermittent Success Route.
Training Period under proposed scheme
|
|
Aspects |
Current
Scheme |
Proposed
Scheme |
|
A |
Total number
of days of training |
1095 (365 X
3) |
730 (365 X 2) |
|
B |
Leaves
permitted |
156 |
24 (12 per
year) |
|
C |
No of Sundays
(52 in a year) |
156 |
104 |
|
D |
No. of
Gazetted Holidays (Approx 15 days) |
45 |
30 |
|
E |
Paid leaves
for Advance ITT and MCS |
30 |
0* |
|
F |
Effective
days of Training [Total of A – (B+C+D+E)] |
708=[1095
–(156+156+45+30)] |
572
=[730-(24+104+30+0) |
|
|
Difference
between period of training under Current and Proposed Scheme |
136 days |
|
|
* Advanced ITT and MCS can be done after completion of Training under Proposed Scheme |
|||
Focused and seamless training is being introduced under
Proposed Scheme as students will be enrolling for the training after completion
of Intermediate Course. In the Current Scheme, student can commence training
after passing either of the Groups of Intermediate Course. In case of students
being unsuccessful at Intermediate exam, more preparatory leaves are availed.
Student will be appearing in the Final examination after completion
of 6 months from end of Practical Training, whereas, in the Current Scheme,
student can appear in the Final examination after completion of 2 ½ year of
practical training.
No preparatory leaves are required as Training would be
examination free in the Proposed Scheme.
In the Proposed Scheme, though number of days of training
will be reduced to a certain extent, however, the training will be continuous
and more effective because students have already passed both the Groups of the
Intermediate and will be appearing in the Final examination after completion of
training.
Roadmap to become a CA
|
Activity |
Current Scheme |
Proposed Scheme |
|
Registration for Foundation / appear
for 10+2 |
Start |
Start |
|
Appear for Foundation Examination |
4 months |
4 months |
|
Study for
Intermediate Examination |
8 months |
8 months |
|
Articled ship |
36 months |
24 months |
|
Study for Final Examination |
- |
6 months |
|
Total period to become
ICAI member |
48 months |
42 months |
|
Work experience for applying CoP |
- |
12 months |
Subject Papers Under New Proposed Scheme
Foundation Level Papers
|
Proposed |
Current |
|
Paper -1 : Accounting |
Paper -1 : Principles and Practice of Accounting |
|
Paper -2 : Business Laws |
Paper -2 : Business Laws
and Business Correspondence and Reporting |
|
Paper -3 : Quantitative Aptitude §
Business Mathematics §
Logical reasoning §
Statistics |
Paper -3 : Business Mathematics and Logical Reasoning and Statistics |
|
Paper -4 : Business Economics |
Paper -4 : Business
Economics & Business
& Commercial Knowledge |
Paper -1: A portion from the subject “Accounting” at the
Intermediate level in the current CA course would be included in the proposed
scheme so as to increase the standard of the Foundation level.
Paper -2: Business Correspondence and Reporting is not being
separately included in the new course. Instead, to facilitate students with the
requisite communication skills, an online course would be launched on
English/Business communication, which would be recommendatory.
Paper -2: A dedicated 100 marks descriptive paper against 60
marks paper (in the current CA course) is proposed for “Business Laws”, which
would help assess communication skills in addition to understanding laws.
Paper -4 : A dedicated 100 marks paper as against 60 marks
paper (in the current CA course) on “Business Economics” will include topics
from the subject “Economics from Finance” at the Intermediate level in the
current CA course.
Paper -4 : Students would get exposure of Business and
Commercial Knowledge as part of their practical training in a more integrated
manner and is therefore excluded in the new course.
Intermediate Level Papers
|
Proposed |
Current |
|
Paper -1 : Advanced Accounting |
Paper -1 : Accounting |
|
Paper -5 : Advanced Accounting |
|
|
Paper -2 : Corporate laws |
Paper -2 : Corporate and other
laws |
|
Paper -3 : Cost and Management Accounting |
Paper -3 : Cost and Management Accounting |
|
Paper -4 : Taxation |
Paper -4 : Taxation |
|
Paper -5 : Auditing and Code of Ethics |
Paper -6 : Auditing
and Assurance |
|
Paper -6A : Financial Management (50 Marks)
Paper -6B: Strategic Management (50 Marks) |
Paper -7: Enterprise Information Systems & Strategic Management |
|
Paper -8 : Financial Management & Economics for Finance |
Instead of two papers on accounting (in the current CA
course) there would be a single paper “Advanced Accounting”. However, there
will be no reduction in the content which is covered in two papers in the
present scheme vis-à-vis one paper in the proposed scheme (some portion will be
moved to Foundation level).
The paper on “Corporate Laws” would cover The Companies Act
in its entirety, since “Business Laws” is already covered at Foundation level
through a 100 mark paper.
Instead of a paper on “Enterprise Information Systems” at
this level, information technology education is being integrated with subjects
at the Final level.
Self-paced online learning
Self-paced online learning modules encompassing different
fields are being introduced which students can learn and qualify at their own
pace after qualifying Intermediate examination and before writing Final
examination. Such creative combination of disciplines would inculcate
cross-disciplinary thinking and facilitate innovative reasoning.
|
Set A (Compulsory) |
Set B (Compulsory) |
Set C (any one to
be selected) |
Set D (any one to
be selected) |
|
Economic
Laws : 1. FEMA Act,
1999 2. Insolvance
and Bankruptcy code, 2016 3. Prevention
of Money Laundering Act, 2002 4. Competition
Act, 2002 5. Enforcement
of Security Act, 2002 6. Real
Estate (Regulation and Development) Act, 2016 7. Prohibition
of Benami Property Transactions Act, 1988 |
Strategic
Cost Management and Performance Evolution |
Specialisation
Elective 1. Risk
management 2. Integrated
and Sustainability Reporting 3. Government
Accounting and Public Finance 4. Introduction
to Digital Ecosystem and Transformation 5. International
Taxation 6. Arbitration,
Mediation and Conciliation 7. Forensic
Audit 8. Financial
Services and Capital Markets 9. Valuation 10. Forex and
Treasury Management |
Incorporating
Multi- disciplinary approach envisaged in NEP, 2020 1. Constitution
of India 2. Psychology
(including self- awareness) 3. Entrepreneurship
(to include MSMEs & Start ups) 4. Communication
(to include advocacy) 5. Philosophy |
Final Level Papers
|
Proposed |
Current |
|
Paper -1 : Financial Reporting |
Paper -1 : Financial Reporting |
|
Paper -2 : Advanced
Financial Management |
Paper -2 : Strategic Financial Management |
|
Paper -3 : Advanced Auditing
& Professional Ethics |
Paper -3 : Advanced
Auditing and Professional Ethics |
|
Under Self-Paced Online Mandatory
Module |
Paper -4: Corporate and Economic Laws |
|
Under Self-Paced Online Mandatory
Module |
Paper -5: Strategic Cost
Management and Performance Evaluation |
|
Paper -4 : Direct Tax Laws and International Taxation |
Paper -7 : Direct
Tax Laws and International Taxation |
|
Paper -5 : Indirect Tax Laws |
Paper -8 : Indirect Tax Laws |
Ethics and Information Technology to be integrated with the
curriculum of all subjects at the Final Level.
|
Proposed |
Current |
|
Paper -6 : Integrated Business Solutions (Multi-disciplinary case study with Strategic Management) |
Paper -6 : Electives (1 out of
6) |
|
Paper -6A : Risk Management |
|
|
Paper -6B: Financial Services and Capital Markets |
|
|
Paper -6C
: International Taxation |
|
|
Paper -6D : Economic
Laws |
|
|
Paper -6E : Global
Financial Reporting Standards |
|
|
Paper -6F : Multidisciplinary Case Study |
Multi-disciplinary case study is being made compulsory, and
the same would be integrated with strategic management. This paper is necessary
to assess the student’s ability to integrate the concepts and provisions across
different subject areas, analyse them and apply them in addressing issues and
solving problems in a multi-disciplinary case study involving strategic
decision making.
The current elective papers like risk management and
financial services and capital markets would be included in self-paced online
module [SET C], out of which students can opt one based on their desired area
of specialisation.
Examination Under New Proposed Scheme
Foundation Level Exam
|
Aspect |
Proposed |
Existing |
|
Eligibility for admission |
Register with BoS after
passing class 10
examinations. |
Register with BoS after
passing class 10
examinations. |
|
Validity of registration |
4 years from the date of registration. |
No Restrictions |
|
Eligibility for appearance in examination |
Appear in Foundation
examination after appearing in class 12 examination and completing
minimum study period of 4 months before
the 1st day of the month in
which examination is held. |
Appear in Foundation examination after appearing in class 12 examination and completing minimum
study period of 4 months
before the 1st day of the month in which examination is held |
If a candidate is not able to clear Foundation Exam within 4
years of registration, he can opt for alternative route of direct entry to
Intermediate Course subject to fulfilling stipulated conditions.
Four Months Study Period has been specified and cut-off
dates i.e. 1st January and 1st July have been removed. This will also enable
holding of Foundation Exams more than two times in a year.
Intermediate Level Exam
|
Aspect |
Proposed |
Existing |
|
Eligibility for admission |
A student who has passed CA Foundation and class 12th Examination. Direct
Entry Route: Commerce Graduates / Post-Graduates (with
minimum 55% marks)
or Other Graduates / Post-Graduates (with
minimum 60% marks)
or Intermediate level
passed candidates of Institute of Company Secretaries of India and Institute of Cost Accountants of India. |
A student who has passed CA Foundation and class 12th Examination. Direct
Entry Route: Commerce Graduates / Post-Graduates (with
minimum 55% marks)
or Other Graduates / Post-Graduates (with
minimum 60% marks)
or Intermediate level
passed candidates of Institute of Company Secretaries of India and Institute of Cost Accountants of India. |
|
Validity of registration |
5 years. Re-validation with
prescribed fee permitted once. |
4 years. Revalidation permitted without restriction. |
|
Eligibility for
appearance in examination |
Foundation or Direct Entry
Route: 8 months
study period. |
Foundation Route: 8 months
study period as
decided by the Council. Direct Entry
Route: After completion of 9 months of Practical Training. |
In case of graduates/ post-graduates, students can
provisionally register in the Final year of graduation/ post-graduation and the
8 months study period would be counted from the date of provisional
registration. They should have, however, passed graduation/ post graduation, as
the case may be, with prescribed minimum marks, at the time of making an
application for appearing in Intermediate examination.
Final Level Examination
|
Aspect |
Proposed |
Existing |
|
Eligibility for admission |
A student who has passed both groups of Intermediate Examination and completed
Integrated Course on Information Technology and Soft Skills. |
A student who has passed both groups of Intermediate Examination and completed
Integrated Course on Information Technology and Soft Skills. |
|
Validity of registration |
10 years. Re-validation with
prescribed fee permitted. |
No Restrictions |
|
Eligibility for appearance in examination |
§
Completed Advanced ICITISS Course (Advanced IT and MCS). §
Completed 6 months after
the completion of practical training before the 1st day of month in which examination is held. §
Qualified the four self-paced online modules. |
§
Completed Advanced ICITISS Course
(Advanced IT and MCS). §
Completed 2.5 years of Practical Training |
Other Exam Aspects
|
Aspect |
Proposed / Existing |
Foundation |
Intermediate |
Final |
|
Number of papers |
Proposed |
4 papers |
6 papers (2 groups of 3 papers
each) |
6 papers (2 groups of 3 papers
each) |
|
Existing |
4 papers |
8 papers (2 groups of 4 papers each) |
8 papers (2 groups of 4 papers
each) |
|
|
No. of Examinations in a Year |
Proposed |
2 (to be increased to 3 after systems
are in place) |
2 (to be increased to 3 after systems
are in place) |
2 (to be increased to 3 after systems
are in place) |
|
Existing |
2 |
2 |
2 |
|
|
Medium (Language) |
Proposed |
English or Hindi |
English or Hindi |
English or Hindi |
|
Existing |
English or Hindi |
English or Hindi |
English or Hindi |
MCQ Questions Pattern
|
Aspect |
Proposed / Existing |
Foundation |
Intermediate |
Final |
|
Manner of assessment |
Proposed |
Partly
Subjective and Partly Objective (with negative marking of 25% for each wrong answer
to MCQs) |
30% case scenario / study based
MCQs and 70%
descriptive questions in all papers with negative marking of 25% for each wrong answer
to MCQs. |
• 30% case scenario / study based
MCQs and 70%
descriptive questions in all papers with negative marking of 25% for each wrong answer
to MCQs. • Open
book/Restricted open book pattern of assessment. |
|
Existing |
Partly Subjective and Partly Objective |
• 30% MCQs / Case
Scenario based and 70% descriptive questions in select papers (theory). • No negative marking. |
• 30% MCQs / Case
Scenario based and 70% descriptive questions and closed book in select
papers. • No negative marking. |
Negative marking would prevent students from resorting to
guess work while answering questions. They would strive to improve their
preparation and hone their application skills in order to answer correctly in
the MCQ based papers.
Pass Percentage under new prposed scheme
|
Aspect |
Proposed / Existing |
Foundation |
Intermediate |
Final |
|
Pass percentage |
Proposed |
50% in each paper |
40% marks in individual paper
and 50% marks in aggregate to pass the
group. |
40% marks in individual paper
and 50% marks in aggregate to pass the
group. |
|
Existing |
40% in each paper
and 50% in aggregate (with negative marking) |
40% marks in individual paper
and 50% marks in aggregate to pass the
group. |
40% marks in individual paper
and 50% marks in aggregate to pass the
group. |
|
|
Proposed |
For Self-paced online modules
the minimum marks
for passing in
each module
would be 50%. |
|||
Exemption Under New Proposed Scheme
|
Aspect |
Proposed / Existing |
Intermediate and Final |
|
Exemption |
Proposed |
§
If
student secures 60% or more in paper/s in one attempt, exemption of paper(s) for immediate 3 attempts is allowed. §
Thereafter, exempted paper/s
will be treated as permanently passed
and student has to score 50%
to pass in
the remaining paper/s individually. Student may, however, opt to
surrender the exemption after three
attempts. |
|
Existing |
If student secures 60% or more,
in paper/s in one attempt, exemption of such paper(s) for immediate 3 attempts is allowed and thereafter exemption will lapse. |
Exemption obtained in any paper would not lapse even after
three attempts. However, the candidate would be required to score 50% each in
the remaining paper(s) (instead of 40% marks in individual paper and 50% marks
in aggregate, as at present). Student may, however, opt to surrender the
exemption after three attempts.
Practical Training
|
Aspect |
Proposed |
Existing |
|
Commencement of Practical Training |
Foundation Route and Direct Entry Route:
After passing both
the groups of Intermediate and completion of ICITSS |
Foundation Route: After passing
either or both the groups of Intermediate
and completion of Integrated Course
on Information Technology and Soft Skills (ICITSS). Direct Entry
Route: After registration in Intermediate Course
and completion of ICITSS Course. |
|
Duration |
Two years |
Three years |
|
Leave |
12 leaves in a year |
1/7th of the period
of Practical Training |
Practical Training to commence only after passing both the
groups of Intermediate in order to have exam free and seamless effective
training, where a student can focus completely on his practical training.
In order to ensure seamless and focussed practical training,
the period of training would be an examination free period of two years. The
student can appear in Final examination after completion of 6 months from the
end of practical training period.
Since there will be no exams during the two years of
practical training, therefore, number of leaves have been restricted to 12 days
in a year.
Industrial Training
|
Aspect |
Proposed |
Existing |
|
Industrial Training |
Last 9 to 12 months
of the Practical Training |
Last 9 to 18 months of the Practical Training |
|
Transfer |
During the second year of
training, the termination of articles shall
be permitted if
the articled assistant opts for industrial training or under such exceptional circumstances or conditions, as may be decided by the
Council. |
Articles so engaged may, by agreement between the articled assistant and his principal, be terminated under
such exceptional
circumstances or conditions, as may be decided by the Council |
|
Stipend |
There has been 100 per cent
increase in the stipend presently
paid to the articled assistants. |
Existing slab has been indicated in the table
beneath Regulation 48(1) |
Consequent to the changes in duration of the practical
training, industrial training would be permitted in the last leg of practical
training for a period of 9 months to 12 months.
Since industrial training is permitted in the last 9 – 12
months of practical training period of two years, the requirement for transfer
has been accordingly modified.
IT Training and Soft Skills Course
|
Aspect |
Proposed |
Existing |
|
Eligibility Criteria |
ICITSS: Before Commencement of Practical Training. AICITSS:
During the two
years of Practical Training and before appearing
in Final Examination. |
ICITSS: Before Commencement of Practical Training. AICITSS: During the last two years
of Practical Training and
before appearing in Final Examination. |
|
Levels of the Courses |
Two – ICITSS &
AICITSS |
Two – ICITSS &
AICITSS |
|
Duration |
As decided by the Council
from time to time |
As decided
by the Council from time to time |
|
Manner of Conducting the
Courses |
As decided
by the Council from time to time |
As decided by the Council
from time to time |
Exit Route – Business Accounting Associate (BAA)
|
Aspect |
Proposed |
Existing |
|
Eligibility Criteria |
A candidate would
be awarded the certificate of Business Accounting Associate (BAA) on fulfilment of following criteria ·
If he has passed
both groups of intermediate level
examination. ·
Completed his practical training, ·
Completed the soft-skills and information technology courses ·
Qualified the four self-paced learning modules |
A candidate, who has opted for the Accounting Technician level, shall be
declared to have passed in that level,
if he - ·
passes either of Groups; ·
completes the Orientation Course
for such period and in such
manner and within such time
as may be specified by the Council
from time to time; and ·
completes
the practical work experience in accounting and related fields for a
period not less than twelve
months in such manner as may
be specified by the Council from time to
time. |
A BAA certificate holder would possess the requisite
accounting and technology skills since he would have qualified both groups of
the intermediate examination; undergone the stipulated two years articleship
training; completed the soft-skills and information technology courses and
qualified the four self-paced online modules. This would cater to the needs of
the industry by providing quality accounting and financial support staff and
help the student in building his career.
Certificate of Practice under new proposed scheme
|
Aspect |
Proposed |
Existing |
|
Eligibility Criteria |
§
A member
desiring to obtain
Certificate of Practice (CoP) at any point
of time would have to undergo
one year of post-qualification experience in a CA firm. §
In case of existing members, the requirement would be treated as having complied with if they have one year of post qualification experience in a CA
firm at any point of time in the last 5 years. |
No specific requirement |