Where is CA profession going?

Sir Due to too high competition in market & increasing number of practising CA's now new CA's prefred to go for job instead of practise..because they will get no clients..and genrally clients prefer old CA's not young...

THE AUDITOR :
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The AUDITOR was never supposed to SERVE someone.
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A person giving his report after checking/investigation;
can't be said to serve his client.  

If his focus go wide from CLIENT to the SOCIETY;
a great work will be done for the NATION.
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It is highly desired that AUDITING AND CONSULTANCY be separated

and

no "tricks" be allowed to show them separately conducted by the same 'GROUP' of AUDITORS.
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THIS REQUIRES INDEPENDENT AND UNBIASED EMPANELMENT.
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If it is not resorted; the future of the "AUDITING PROFESSION" is not bright.
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The present scenario has started giving signals for that.
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If new generation doesn't raise voice;

they will never find auditing work for SELF.
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They will find themselves working for others

and lose their INDEPENDENCE.

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Well to be very honest, Role of Chartered Accountant cannot be restricted to "AUDITOR" whether in modern day or ever in the past. If that would have been the case CA students should have studied on Accountancy & Audit. Study of Financial Management & Information Technology would be useless by this logic.

 Role of Chartered Accountants have increased multiple folds in past 2-3 decades & with huge presence of MNC's there has been a great upsurge in Job opportunities. Companies require expertise for almost every matter. 

On part of members (or I should say, newly qualified students), setting up practice is not an easy task. Nobody would like to put in their blood and sweat to qualify and wait an eternity to even get to a "break-even point" let alone earning good money. Jobs have helped newly qualified students to earn and growth in an altogether new terrain.

Originally posted by : Nitish Sharma
	Well to be very honest, Role of Chartered Accountant cannot be restricted to "AUDITOR" whether in modern day or ever in the past. If that would have been the case CA students should have studied on Accountancy & Audit. Study of Financial Management & Information Technology would be useless by this logic.  Role of Chartered Accountants have increased multiple folds in past 2-3 decades & with huge presence of MNC's there has been a great upsurge in Job opportunities. Companies require expertise for almost every matter.  On part of members (or I should say, newly qualified students), setting up practice is not an easy task. Nobody would like to put in their blood and sweat to qualify and wait an eternity to even get to a "break-even point" let alone earning good money. Jobs have helped newly qualified students to earn and growth in an altogether new terrain.

I am talking about auditing and consultancy to be separated. I am not against the both. A long debate is needed. The question is of quality of services and survival of small entities. There is already a restriction in CA profession that a person doing internal audit is not authorized to conduct statutory audit. Tell me - can't he do the same?  The reason is : auditor must be independent.

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I am not against earning through job in intial stage of career.

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You are confirming my views that majority of fresh CAs are ready to go into job market because they want instant gains and who doesn't want so?

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The another point is :

They don't have sufficient work immediately after passing the course. The same situation happens in medical and other professions as well. Passing professional course doesn't mean instant gains through own profession.

Further; the job culture in India has developed due to development of infortech.

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We as a CA; don't need to follow it for a long time. Ask some CAs who are serving in big companies and know the type of pressure they bear. You will come to know that in majority of the cases they are tired....and want to swtich....to own profession (but unable to do so due to fear of losing "regular" income).

Most of the ca students want to practice but due to various kinds of fear they switch to job. Various reasons could be quick money, family pressure, lack of support from our seniors, weak network, low self-confidence, weak communication skills, capital constraints, less experience, doubt of survival in the market, weak economy, low risk taking mindset, and many other doubts.

Only Icai and existing well established firms can help new CAs who wants to enter into practice. In short, young CAs have many doubts which are required to be shorted out and only our seniors and icai can do this.

Dear Surendra  Sir,

I am following you for quite some time on Caclubindia & I also admire you for such questions.

I am trying to these questions raised by you.

. 1. Whether "our" CA profession was "originally" designed to engage in a job?

  Yes it is true that  CA profession was  “originally” not designed to engage in a job but these is equally true that these days CA is looked upon by the corporate as a “all business solutions provider” & even the ICAI is working on “CA Brand”.

And the Committee for Members in industry (Cmii) is there on ICAI panel for last twenty years which also implies that even the ICAI also acknowledge the Change from what was “originally” designed .  

. 2. What are the reasons behind such "attitude" of the mass?

I am assuming that this question is also answered by me in first question itself. To be more specific such “attitude” is more attributed towards such change in ICAI attitude as well.

. 3. Why analytical power is missing in the majority of the students?

Well sir again analytical power is a subjective matter. How person of your stature can say so for majority of students. Analytical Power also depends on person to persons. It has nothing to do with young students/Young CA. I can also quote examples for some of senior CA who lacks such analytical power.

It is very difficult a task to measure some one analytical power .

.. 4. Whether articleship training is unique across India?

Sir, these one is tricky only unique thing about articleship is the stipend which is paid by CAs across india.

Following points is required to be considered

1. Does all CA firm across India provides a SAME level exposures? The obvious answer is a “BIG NO”
2. Now if some young students enter a CA firm, gains all relevant experiences of that firm. Now can he switch to other firm if he want to gain some experience of other relevant area of interest. Again the answer is a “BIG NO”
3. Now why ICAI will decide what will be stipend, it should be decided by members & students(Market force) or another option is ICAI can allot articles to there members for a fixed period by matching preferences of its members & students so that a uniqueness along with a uniformity can be achieved.

And Sir I also want to raise a point about dummy articleship, this dummy culture is also gaining due such points which I mention if ICAI can mange the above then such” Dummy will die a slow death”.  

Sir at last I am not answering the last question because quite frankly  I also didn’t understand what the president message conveyed.

Originally posted by : AKSH KUMAR
	Dear Surendra  Sir, I am following you for quite some time on Caclubindia & I also admire you for such questions. I am trying to these questions raised by you. . 1. Whether "our" CA profession was "originally" designed to engage in a job?   Yes it is true that  CA profession was  “originally” not designed to engage in a job but these is equally true that these days CA is looked upon by the corporate as a “all business solutions provider” & even the ICAI is working on “CA Brand”. And the Committee for Members in industry (Cmii) is there on ICAI panel for last twenty years which also implies that even the ICAI also acknowledge the Change from what was “originally” designed .   . 2. What are the reasons behind such "attitude" of the mass? I am assuming that this question is also answered by me in first question itself. To be more specific such “attitude” is more attributed towards such change in ICAI attitude as well. . 3. Why analytical power is missing in the majority of the students? Well sir again analytical power is a subjective matter. How person of your stature can say so for majority of students. Analytical Power also depends on person to persons. It has nothing to do with young students/Young CA. I can also quote examples for some of senior CA who lacks such analytical power. It is very difficult a task to measure some one analytical power . .. 4. Whether articleship training is unique across India? Sir, these one is tricky only unique thing about articleship is the stipend which is paid by CAs across india. Following points is required to be considered Does all CA firm across India provides a SAME level exposures? The obvious answer is a “BIG NO” Now if some young students enter a CA firm, gains all relevant experiences of that firm. Now can he switch to other firm if he want to gain some experience of other relevant area of interest. Again the answer is a “BIG NO” Now why ICAI will decide what will be stipend, it should be decided by members & students(Market force) or another option is ICAI can allot articles to there members for a fixed period by matching preferences of its members & students so that a uniqueness along with a uniformity can be achieved. And Sir I also want to raise a point about dummy articleship, this dummy culture is also gaining due such points which I mention if ICAI can mange the above then such” Dummy will die a slow death”.   Sir at last I am not answering the last question because quite frankly  I also didn’t understand what the president message conveyed.

I am really happy that students know the better answer than members sitting at the council. The council believes in one way communication. When asked; the President had recently conveyed at Faridabad on 19 06 2013 that whatever suggestions are received; are forwarded to the respective committee. But the committees never revert back how the suggestions were "treated" given by others. How a common member be motivated for the cause of the profession without establishing his identity?

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I agree that even seniors are lacking in analytical skills. I hope you also have that experience.

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CA profession has to change its direction because majority of CAs could not find the "core work" of auditing for which they joined the course. At present; students don't know what they will really do (in field) after qualifying.

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Regarding unique training; it is a must that an independent and unbiased EMPANELMENT be brought in the system so that every practising CA apply his "core" expertise to some extent and the students will also get "proper" training by visiting clients' organizations.

(This is the answer to solve all the problems).

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I also support your views about stipend. The ICAI may  provide guidelines only to pay stipend as it has provided guidelines for charging fee. (But who follows)?

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Many firms are paying high stipend. So whatever is suggested by the ICAI; is towards minimum amount. At present many students "bargain" for the stipend with the prospective employers which in the past; nobody could dare to do so. In this matter; they are in a better position.

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Regarding payment of stipend; I don't think that students are not worthy. The lack of analytical skills happens when students are unable to find required opportunities to conduct AUDIT.

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Regarding President's Message; one may find it in ICAI's journal : THE CHARTERED ACCOUNTANT every month. But how many students (members also) open the wrapper of it?

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If you refer past one year's journals; you may find a wide gap between the CA Curriculum and actual standing of  the present profession. Everything can't be covered in the study materials and books. If it could happen; there is no use of magazines and journals.

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I am of firm opinion that in this world there is no profession equivalent to Chartered Accountancy profession because a CA can change his area of profession any time during his lifetime.

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But majority of students are "interested" in job because they are  either not properly trained or they don't have patience although they are able to get this qualification in the age of 21-22. Their vision regarding the profession could not be developed where it will stand after 10 years.  This is the reason that majority of students  are interested in "short term" gains (seniors also find their name in the list).

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You may also refer what I has been published at caclub 3.5 years ago :

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/articles/swot-analysis-of-ca-profession--3891.asp

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I remember the quote of CA Ramesh Goyal, Surat who has narrated the CA profession as BANYAN TREE.

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According to him ;

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"I got training from a South Indian Firm; then I trained so many CA students. After qualification; they are providing training to others.......

but the profession is ONE :

The CHARTERED ACCOUNTANT.

(And this is happening without running any educational institution by ICAI in "physical" form). Now students should realize what "stipend" does matter for a unique education and training. Every system has its own strengths and weaknesses. At least an entry in the profession is open to all....even at 50%...which is not so in other streams).

Whatever deficiencies are there; can be rectified later on after training. Life is not ruined when one is having professional qualification in his hands in the age of 21-22.

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By investing 2-3 more years to rectify the mistakes; a wonderful career can be had.

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Your may refer the following :

/articles/how-to-be-a-true-professional-16556.asp

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/articles/know-your-hidden-strengths-to-decide-your-career-16317.asp

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/articles/new-dimensions-are-open-for-chartered-accountants-16261.asp

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/articles/time-management-for-self-employed-persons-13744.asp

and last but not the least -

/articles/how-to-start-your-own-practice-as-ca-cs-icwa-12489.asp

To gather clients is major task, after having minumum number of clients, many auditors in my town (May be most of the practiced CAs) start Chit business and other finance business. This type of buisiness enlarges the client base as clients could get funding from their Auditors whom they trust. The increase in the financial position of client base through funding to their business again will increase the work of auditor

Maintaining employes also matters.