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Chartered Accountants who are not registered auditors may not act as or hold out to be auditors in public practice<ref>Auditing Profession Act s41(a)</ref>. However, the AP Act does not prohibit non-RAs from using the description 'internal auditor' or accountant' or from auditing a not-for-profit club, institution or association if he or she receives no fee for such audit<ref>Auditing Profession Act s41(3)</ref> The Training Outside Public Practice (TOPP) programme has a financial management focus; TOPP trainees can thus become chartered accountants with a more limited knowledge and experience of auditing than those who undergo the TIPP programme (Training In Public Practice).
Chartered Accountants who are not registered auditors may not act as or hold out to be auditors in public practice<ref>Auditing Profession Act s41(a)</ref>. However, the AP Act does not prohibit non-RAs from using the description 'internal auditor' or accountant' or from auditing a not-for-profit club, institution or association if he or she receives no fee for such audit<ref>Auditing Profession Act s41(3)</ref> The Training Outside Public Practice (TOPP) programme has a financial management focus; TOPP trainees can thus become chartered accountants with a more limited knowledge and experience of auditing than those who undergo the TIPP programme (Training In Public Practice).


==== India ====
=== India ===


In India, the profession of chartered accountancy is regulated by the [[Institute of Chartered Accountants of India]] which was established by Parliament under the Chartered Accountants Act of 1949. The ICAI is responsible for examinations and licensing of it members. ICAI is the second largest body of professional accountants in the world, with nearby 155000 registered members.
In India, the profession of chartered accountancy is regulated by the [[Institute of Chartered Accountants of India]] which was established by Parliament under the Chartered Accountants Act of 1949. The ICAI is responsible for examinations and licensing of it members. ICAI is the second largest body of professional accountants in the world, with nearby 155000 registered members.

Revision as of 17:11, 20 October 2009

Chartered Accountants were the first accountants to form a professional body, initially established in Britain in 1854. The Edinburgh Society of Accountants (formed 1854), the Glasgow Institute of Accountants and Actuaries (1854) and the Aberdeen Society of Accountants (1867) were each granted a royal charter almost from their inception.[1] The title is an internationally recognised professional designation.[2]

Chartered Accountants work in all fields of business and finance. Some are engaged in public practice work, others work in the private sector and some are employed by government bodies.[3][4]

Chartered Accountants Institutes require members to undertake a minimum level of continuing professional development to stay ahead of their peers. They facilitate special interest groups - lead academic and professional thinking in accountancy. They provide support to members by offering advisory services, technical helplines and technical libraries. They offer opportunities for professional networking and career and business development.[5][6]

In the United States the approximate equivalent is the certified public accountant.

Countries

United Kingdom

In the UK, there are no licence requirements for individuals to describe themselves or to practice as accountants, but to use the description "Chartered Accountant" they must be members of one of the following organisations:

Each of these bodies admit members, who become Chartered Accountants, only after passing examinations and undergoing a period of relevant work experience. The ICAEW requires that students complete 15 examinations as well as 3240 hours of relevant work experience. Once admitted, members are expected to comply with ethical guidelines and gain appropriate continuing professional development. Fully qualified members of the ICAEW earn the designation ACA (Associate Chartered Accountant). After 10 years membership, members are invited to apply for fellowship of the Institute and earn the designation FCA (Fellow Chartered Accountant).

Chartered Accountants who engage in public practice work (i.e. providing services to the public rather than acting as an employee) must gain a "practising certificate" by meeting further requirements such as purchasing adequate insurance and undergoing regular inspections.

Chartered Accountants holding practising certificates may also become "Registered Auditors", providing they can demonstrate the necessary professional ability in that area. A Registered Auditor is able to perform statutory financial audits in accordance with the Companies Act 1985.

Further restrictions apply to accountants who work as insolvency practitioners.

Republic of Ireland

In the Republic of Ireland, Chartered Accountants are generally members of the Institute of Chartered Accountants in Ireland and use the designatory letters ACA or FCA. Chartered Accountants may also be members of the Institute of Chartered Accountants in England and Wales or the Institute of Chartered Accountants of Scotland.

EU accountants

Under the Mutual Recognition Directive, EEA and Swiss nationals holding a professional qualification can become members of the equivalent bodies in another member state. They must, however, pass an aptitude test in understanding local conditions (which for accountants will include local tax and company law variations).

The local title is however not available for use if the professional does not choose to join the local professional body. For example a holder of the French 'expert comptable' qualification could practise as an accountant in England without taking a local test but could only describe him/herself as "Expert Comptable (France)" not "Chartered Accountant". Within the EEA, only the UK and Ireland have bodies that issue the Chartered Accountant title.

Australia

Chartered Accountants in Australia belong to the Institute of Chartered Accountants of Australia and use the designatory letters CA. Some senior members of the Institute may be elected Fellows and use the letters FCA.

New Zealand

In New Zealand, Chartered Accountants belong to the New Zealand Institute of Chartered Accountants and use the designatory letters CA. Some senior members may be elected Fellows and use the letters FCA.

There is also a mid-tier qualification called Associate Chartered Accountant with the designatory letters ACA. Associate Chartered Accountants are not eligible to hold a Certificate of Public Practice and therefore cannot offer services to the public.

Canada

In Canada, Chartered Accountants must be members of the Canadian Institute of Chartered Accountants (CICA). However, CICA membership must be held alongside membership of at least one CA institute (or ordre in French) of a Canadian province or territory. It is not possible to join the CICA directly.

Auditing rights are regulated by provincial governments. In British Columbia, the Business Corporations Act (which had replaced the longstanding Company Act) provides that only CAs, CGAs (Certified General Accountants), or anyone who has been granted an accounting licence by the provincial regulatory body may audit public companies. In Prince Edward Island, only qualified CAs and CGAs can perform public accounting and auditing in accordance with the Public Accounting and Auditing Act. In all other provinces, except Quebec and Ontario (detailed below), only qualified CAs, CGAs, and CMAs (Certified Management Accountants) may audit public companies.

Historically Quebec and Ontario only allowed CAs to audit public companies. However, CGAs and CMAs can audit a selected list of public bodies in Quebec. In 2004, the Ontario government passed legislation that would enable CAs, CGAs and CMAs to practice public accounting under a reconstituted Public Accountants Council. Only qualified CGAs, CMAs and CAs can be eligible for public accounting licenses.

In Quebec, the situation is currently under review and challenge based on the Agreement of Internal Trade (AIT). In August 2005, the AIT issued a report recommending Quebec to change its legislation by opening public auditing to qualified accountants who are not CAs.

The size of the accounting bodies varies across Canada. In Ontario and Quebec, CA is larger than CGA or CMA, however CGA is the fastest growing amongst the three bodies. In Manitoba and British Columbia, CGA is the largest accounting body.

Canadian Chartered Accountants use the designatory letters CA. However, a Canadian CA who is a member of a different institute/ordre to that of the province or territory in which he or she resides may face a restriction on using designatory letters in that province or territory. It is however normally straightforward to transfer membership from one provincial institute to another.

The Canadian CA is one of the few accounting designations that can be transferred to an American CPA via a reciprocity exam.

Qualification to become a CA requires an undergraduate degree plus articling experience and, depending on the province, additional education. Candidates in all provinces (and Bermuda) are required to pass the 3-day Uniform Evaluation (UFE).

South Africa

In South Africa, SAICA (South African Institute of Chartered Accountants) regulates the CA(SA) designation (Chartered Accountant (South Africa)).

People seeking to qualify as a CA(SA) normally begin with a bachelor's degree in accounting. They then complete a CTA (Certificate for Theory in Accounting), followed by part one (QE) and part two (PPE) of the qualifying exams. They must also complete three years of practical experience, working for a registered training office. Articled clerks who switch employers during this period are required to extend their training by six months.

A separate registration is needed for Chartered Accountants wishing to act as auditors in public practice, namely the RA (Registered Auditor). The RA designation is conferred by IRBA (Independent Regulatory Board For Auditors), (previously known as PAAB (Public Accountants and Auditors Board)) in terms of the Auditing Profession Act (AP Act)[7].

Chartered Accountants who are not registered auditors may not act as or hold out to be auditors in public practice[8]. However, the AP Act does not prohibit non-RAs from using the description 'internal auditor' or accountant' or from auditing a not-for-profit club, institution or association if he or she receives no fee for such audit[9] The Training Outside Public Practice (TOPP) programme has a financial management focus; TOPP trainees can thus become chartered accountants with a more limited knowledge and experience of auditing than those who undergo the TIPP programme (Training In Public Practice).

India

In India, the profession of chartered accountancy is regulated by the Institute of Chartered Accountants of India which was established by Parliament under the Chartered Accountants Act of 1949. The ICAI is responsible for examinations and licensing of it members. ICAI is the second largest body of professional accountants in the world, with nearby 155000 registered members.

Members are awarded the CA designation, to be placed just before their names, e.g. CA John Doe.

After the Chartered Accountants Act, 1949 was passed, the term Chartered Accountant has been used in place of Indian Registered Accountant. In this case, therefore, the term "Chartered" does not relate to a Royal Charter as in the case of the UK or Australia, as there is no Royal Charter in the Republic of India.

The CA qualification is awarded after passing examinations and completing three and a half years of articleship training (apprenticeship).[10] This is to ensure that trainees have a mix of theoretical and practical training before they become members.

Statutory Audit under the Companies Act, 1956 and Tax Audit under the Income-Tax Act, 1961 can be carried out only by Chartered Accountants holding a Certificate of Practice.

The ICAI has also entered into Mutual Recognition Agreements with several overseas accounting bodies, e.g. the CECA[clarification needed] with Singapore, Australia & England.

Pakistan

The Institute of Chartered Accountants of Pakistan (ICAP) was established as a statutory autonomous body in 1961 to regulate the profession of accountancy in Pakistan. As of January 2009, around 4,500 persons were registered with the Institute as Chartered Accountants.

Sri Lanka

Chartered Accountants in Sri Lanka belong to the Institute of Chartered Accountants of Sri Lanka and use the designatory letters ACA. Some senior members of the Institute may be elected Fellows and use the letters FCA.

List of institutes of Chartered Accountants

Cultural references

The image of the profession is still haunted by the 1969 Vocational Guidance Counsellor sketch on Monty Python's Flying Circus, in which an "appallingly dull fellow" is recommended to become a chartered accountant.[11]

References

  1. ^ Perks, R.W. (1993). Accounting and Society. London: Chapman & Hall. pp. p.16. ISBN 0412473305. {{cite book}}: |pages= has extra text (help)
  2. ^ "Global Accounting Alliance". Retrieved 2009-06-05.
  3. ^ "Life as a CA has many advantages". Retrieved 2009-06-05.
  4. ^ "Why Chartered Accountancy?". Retrieved 2009-06-05.
  5. ^ "Benefits of being a Chartered Accountant". Retrieved 2009-06-05.
  6. ^ "Benefits of joining the ICAEW". Retrieved 2009-06-05.
  7. ^ Auditing Profession Act s37(2)
  8. ^ Auditing Profession Act s41(a)
  9. ^ Auditing Profession Act s41(3)
  10. ^ "ICAI Students' Guide". Retrieved 2007-10-30.[dead link]
  11. ^ Learn the elementary bits about business, Financial Times, 14 October 2008

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