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Chartered Accountant (CA) is the title used by members of certain professional accountancy associations in the British Commonwealth countries and Ireland. The term chartered comes from the Royal Charter granted to the world's first professional body of accountants upon their establishment in 18541.
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.
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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:
- the Institute of Chartered Accountants in England & Wales (ICAEW) (designatory letters ACA or FCA);
- the Institute of Chartered Accountants of Scotland (ICAS) (designatory letters CA);
- the Institute of Chartered Accountants in Ireland (ICAI) (which is a UK body as it operates in Northern Ireland, designatory letters ACA or FCA);
There is another accountancy body called The Association of Chartered Certified Accountants (ACCA), which has similar entitlements and responsibilities. Its members are Chartered Certified Accountants; the former name Certified Accountants is sometimes still used for brevity.
Each of these bodies admits members 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 experience.
Chartered Accountants and Chartered Certified Accountants who engage in public practice work (i.e. selling 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 and ACCAs 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 carry out insolvency work.
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 destinations that can be transferred to an American CPA via a reciprocity exam.
South Africa
In South Africa, SAICA (South African Institute of Chartered Accountants) regulates the CA(SA)(Chartered Accountant (South Africa)) designation.
A separate registration is needed for Chartered Accountants wishing to act as Auditors, namely RA (Registered Auditor). The RA Designation is controlled by IRBA (Independent Regulatory Board For Auditors), previously known as PAAB (Public Accountants and Auditors Board.).
A popular misconception exists that a Chartered Accountant may act as an Auditor. Since TOPP (Training Outside Public Practice) originated, a great number of members earned the designation Chartered Accountant with no knowledge or experience in Auditing. These Chartered Accountants specialise in financial management and almost exclusively act as financial directors or managers for large corporations.
To attain a CA(SA) qualification one must complete 3 years of practical experience. One attains this experience by working for a registered training office. Article clerks who switch employers during this period are required to extend their training by 6 months.
After completing a relevant degree, normally a bachelors in accounting, and completing a CTA (Certificate for Theory in Accounting), part one (QE) and part two (PPE) of the qualifying exams must be completed before finally qualifying as a CA(SA).
A discussion forum for Chartered Accountancy (SA) assists anyone who has relevant questions to ask.2
India
In India, the profession of chartered accountancy is regulated by the Institute of Chartered Accountants of India which was founded 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 150,000 registered members.
Members are awarded the CA designation.
The Chartered Accountants Act, 1949 was passed on May 1. The term Chartered Accountant came to be used in place of Indian Registered Accountants. 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.
A person shall be awarded the CA after passing the relevant examinations and completion of three and a half years of articleship training (apprenticeship).3 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 with Singapore. The Institute is in process for opening up with various other countries and governments.
Pakistan
Institute of Chartered Accountants of Pakistan (ICAP) was established on July 1, 1959 to regulate the profession of accountancy in the country. It is a statutory autonomous body established under the Chartered Accountants Ordinance 1961. With the significant growth in the profession, the CA Ordinance and Bye-Laws were revised in 1983.
The head office of the Institute is in Clifton, Karachi. The Institute also has regional offices at Lahore, Islamabad, Multan and Faisalabad. The ICAP is a member of the International Federation of Accountants (IFAC), International Accounting Standards Board (IASB), Confederation of Asian & Pacific Accountants (CAPA) and South Asian Federation of Accountants (SAFA).
As at March 2008 the number of persons registered as Chartered Accountants with the Institute were around 5,500.
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
- Institute of Chartered Accountants of Australia
- Bahamas Institute of Chartered Accountants
- Institute of Chartered Accountants of Bangladesh
- Institute of Chartered Accountants of Barbados
- Canadian Institute of Chartered Accountants
- Institute of Chartered Accountants in England & Wales
- Institute of Chartered Accountants of Ghana
- Institute of Chartered Accountants of Guyana
- Institute of Chartered Accountants of India
- Institute of Chartered Accountants in Ireland
- Institute of Chartered Accountants of Jamaica
- Institute of Chartered Accountants of Namibia
- Institute of Chartered Accountants of Nepal
- New Zealand Institute of Chartered Accountants
- Institute of Chartered Accountants of Nigeria
- Institute of Chartered Accountants of Pakistan
- Institute of Chartered Accountants of Scotland
- Institute of Chartered Accountants of Sierra Leone
- South African Institute of Chartered Accountants
- Institute of Chartered Accountants of Sri Lanka
- Institute of Chartered Accountants of Trinidad and Tobago
- Institute of Chartered Accountants of Zimbabwe
See also
- Uniform Final Evaluation (Canada and Bermuda)
References
- ^ 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. Perks, R.W.(1993): Accounting and Society. Chapman & Hall (London); ISBN 0412473305. p.16
- ^ CA Forum - a discussion for Chartered Accountancy in South Africa
- ^ "ICAI Students' Guide". Retrieved on 2007-10-30.
External links
- South African Institute of Chartered Accountants
- Institute of Chartered Accountants of India
- Institute of Chartered Accountants of England and Wales
- Institute of Chartered Accountants of Scotland (ICAS)
- Institute of Chartered Accountants in Australia
- Institute of Chartered Accountants of Nepal
- Canadian Institute of Chartered Accountants
- New Zealand Institute of Chartered Accountants
- Institute of Chartered Accountants of Scotland
- Institute of Chartered Accountants in Ireland
- Institute of Chartered Accountants of Pakistan
- Malaysian Institute of Accountants (MIA)
Wikipedia content modification information:
- This page was last modified on 25 November 2008, at 10:11.
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