This is for all CAs in Practice or those who want to obtain a Certificate of practice.
We all know what a Practicing CA does. But most of who are not in practice would know that there are a lot of restrictions on a practicing CA. The olst important of them is that a Practicing CA is not allowed to enter into any other business without the prior approval of the CA Institute/council.
However, This is not the case any more. Although the council still maintains that a member holding Certificate of Practice (CoP) has to take prior approval, there has been major relaxations.
The Chartered Accountants Act states that ;-
A member of the Institute shall be deemed “to be in practice” when individually or in partnership with Chartered Accountants in practice, he, in consideration of remuneration
received or to be received-
(i) engages himself in the practice of accountancy; or
(ii) offers to perform or performs service involving the auditing or verification of financial transactions, books, accounts or records, or the preparation, verification or certification of financial accounting and related statements or holds himself out to the public as an
accountant; or
(iii) renders professional services or assistance in or about matters of principle or detail relating to accounting procedure or the recording, presentation or certification of financial facts or data; or
(iv) renders such other services as, in the opinion of the Council, are or may be rendered by a Chartered Accountant in practice: and the words “to be in practice” with their grammatical variations and cognate expressions shall be construed accordingly.
An associate or a fellow of the Institute who is a salaried employee of a Chartered Accountant in practice or a firm of such Chartered Accountants shall, notwithstanding such employment, be deemed to be in practice for the limited purpose of the training of Articled Clerks.
the Council has passed a resolution permitting a Chartered Accountant in practice to render entire range of “Management Consultancy and other Services”. The definition of the expression “Management Consultancy and other Services” is given below:
The expression “Management Consultancy and other Services” shall not include the function
of statutory or periodical audit, tax (both direct taxes and indirect taxes) representation or
advice concerning tax matters or acting as liquidator, trustee, executor, administrator,
arbitrator or receiver, but shall include the following
(i) Financial management planning and financial policy determination.
(ii) Capital structure planning and advice regarding raising finance.
(iii) Working capital management.
(iv) Preparing project reports and feasibility studies.
(v) Preparing cash budget, cash flow statements, profitability statements, statements of sources and application of funds etc.
(vi) Budgeting including capital budgets and revenue budgets.
(vii) Inventory management, material handling and storage.
(viii) Market research and demand studies.
(ix) Price-fixation and other management decision making.
(x) Management accounting systems, cost control and value analysis.
(xi) Control methods and management information and reporting.
(xii) Personnel recruitment and selection.
(xiii) Setting up executive incentive plans, wage incentive plans etc.
(xiv) Management and operational audits.
(xv) Valuation of shares and business and advice regarding amalgamation, merger and
acquisition.
(xvi) Business Policy, corporate planning, organisation development, growth and
diversification.
(xvii)Organisation structure and behaviour, development of human resources including design
and conduct of training programmes, work study, job-description, job evaluation and
evaluation of work loads.
(xviii)Systems analysis and design, and computer related services including selection of
hardware and development of software in all areas of services which can otherwise be
rendered by a Chartered Accountant in practice and also to carry out any other
professional services relating to EDP.
(xix) Acting as advisor or consultant to an issue,
(xx) Investment counselling in respect of securities [as defined in the Securities Contracts (Regulation) Act, 1956 and other financial instruments.] (In doing so, the relevant provisions of the Code of Ethics must be kept in mind).
(xxi) Acting as registrar to an issue and for transfer of shares/other securities. (In doing so, the
relevant provisions of the Code of Ethics must be kept in mind).
(xxii)Quality Audit.
(xxiii) Environment Audit.
(xxiv)Energy Audit.
(xxv)Acting as Recovery Consultant in the Banking Sector.
(xxvi) Insurance Financial Advisory Services under the Insurance Regulatory &
Development Authority Act, 1999, including Insurance Brokerage.
The act of setting up of an establishment offering to perform accounting services would tantamount to being in practice even though no client has been served.
Some critical issues - but read between the lines.
The member of the Institute are now permitted to use the word 'CA' as prefix before their name irrespective of the fact that are in practice or not.
a member in practice cannot use any designation other than that of a Chartered Accountant, nor can he use any other description, whether in addition thereto or in substitution therefore. Nevertheless a member in practice may use any other letters or description indicating membership of Accountancy Bodies which have been approved by the Council or of bodies other than Accountancy Institutes so long as such use does not imply adoption of a designation and/or does not amount to advertisement or publicity.
For example, though a member cannot designate himself as a Cost Accountant, he can use the letters A.I.C.W.A. after his name, when he is a member of that Institute.
Not only this. The institute allows you to become a Director in a company subject to restrictions. Now the Inssitute also allows you to partner with NON CAs (subject to restrictions).
So now guys, do u really think its not worth obtaining the CoP. Obviously, there are stringent requirements for Practicing CAs. but its worth it.
We all know what a Practicing CA does. But most of who are not in practice would know that there are a lot of restrictions on a practicing CA. The olst important of them is that a Practicing CA is not allowed to enter into any other business without the prior approval of the CA Institute/council.
However, This is not the case any more. Although the council still maintains that a member holding Certificate of Practice (CoP) has to take prior approval, there has been major relaxations.
The Chartered Accountants Act states that ;-
A member of the Institute shall be deemed “to be in practice” when individually or in partnership with Chartered Accountants in practice, he, in consideration of remuneration
received or to be received-
(i) engages himself in the practice of accountancy; or
(ii) offers to perform or performs service involving the auditing or verification of financial transactions, books, accounts or records, or the preparation, verification or certification of financial accounting and related statements or holds himself out to the public as an
accountant; or
(iii) renders professional services or assistance in or about matters of principle or detail relating to accounting procedure or the recording, presentation or certification of financial facts or data; or
(iv) renders such other services as, in the opinion of the Council, are or may be rendered by a Chartered Accountant in practice: and the words “to be in practice” with their grammatical variations and cognate expressions shall be construed accordingly.
An associate or a fellow of the Institute who is a salaried employee of a Chartered Accountant in practice or a firm of such Chartered Accountants shall, notwithstanding such employment, be deemed to be in practice for the limited purpose of the training of Articled Clerks.
the Council has passed a resolution permitting a Chartered Accountant in practice to render entire range of “Management Consultancy and other Services”. The definition of the expression “Management Consultancy and other Services” is given below:
The expression “Management Consultancy and other Services” shall not include the function
of statutory or periodical audit, tax (both direct taxes and indirect taxes) representation or
advice concerning tax matters or acting as liquidator, trustee, executor, administrator,
arbitrator or receiver, but shall include the following
(i) Financial management planning and financial policy determination.
(ii) Capital structure planning and advice regarding raising finance.
(iii) Working capital management.
(iv) Preparing project reports and feasibility studies.
(v) Preparing cash budget, cash flow statements, profitability statements, statements of sources and application of funds etc.
(vi) Budgeting including capital budgets and revenue budgets.
(vii) Inventory management, material handling and storage.
(viii) Market research and demand studies.
(ix) Price-fixation and other management decision making.
(x) Management accounting systems, cost control and value analysis.
(xi) Control methods and management information and reporting.
(xii) Personnel recruitment and selection.
(xiii) Setting up executive incentive plans, wage incentive plans etc.
(xiv) Management and operational audits.
(xv) Valuation of shares and business and advice regarding amalgamation, merger and
acquisition.
(xvi) Business Policy, corporate planning, organisation development, growth and
diversification.
(xvii)Organisation structure and behaviour, development of human resources including design
and conduct of training programmes, work study, job-description, job evaluation and
evaluation of work loads.
(xviii)Systems analysis and design, and computer related services including selection of
hardware and development of software in all areas of services which can otherwise be
rendered by a Chartered Accountant in practice and also to carry out any other
professional services relating to EDP.
(xix) Acting as advisor or consultant to an issue,
(xx) Investment counselling in respect of securities [as defined in the Securities Contracts (Regulation) Act, 1956 and other financial instruments.] (In doing so, the relevant provisions of the Code of Ethics must be kept in mind).
(xxi) Acting as registrar to an issue and for transfer of shares/other securities. (In doing so, the
relevant provisions of the Code of Ethics must be kept in mind).
(xxii)Quality Audit.
(xxiii) Environment Audit.
(xxiv)Energy Audit.
(xxv)Acting as Recovery Consultant in the Banking Sector.
(xxvi) Insurance Financial Advisory Services under the Insurance Regulatory &
Development Authority Act, 1999, including Insurance Brokerage.
The act of setting up of an establishment offering to perform accounting services would tantamount to being in practice even though no client has been served.
Some critical issues - but read between the lines.
The member of the Institute are now permitted to use the word 'CA' as prefix before their name irrespective of the fact that are in practice or not.
a member in practice cannot use any designation other than that of a Chartered Accountant, nor can he use any other description, whether in addition thereto or in substitution therefore. Nevertheless a member in practice may use any other letters or description indicating membership of Accountancy Bodies which have been approved by the Council or of bodies other than Accountancy Institutes so long as such use does not imply adoption of a designation and/or does not amount to advertisement or publicity.
For example, though a member cannot designate himself as a Cost Accountant, he can use the letters A.I.C.W.A. after his name, when he is a member of that Institute.
Not only this. The institute allows you to become a Director in a company subject to restrictions. Now the Inssitute also allows you to partner with NON CAs (subject to restrictions).
So now guys, do u really think its not worth obtaining the CoP. Obviously, there are stringent requirements for Practicing CAs. but its worth it.
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