Overview
Chartered Accountancy (CA) is a profession that imparts the best combination of theoretical knowledge, practical experience, and analytical as well as technical skills to manage and look after the entire operations of modern business organizations. It is a prestigious and rewarding profession that holds top management positions in both the public and private sectors. The scope of Chartered Accountants has rapidly transformed due to globalization, liberalization, and revolution in information technology.
Role of Chartered Accountants:
Chartered Accountants hold top management positions in both the public and private sectors. By virtue of their professional qualification and specialized knowledge, they provide various types of consultancy services such as profit planning program formulation, guiding managerial decisions, feasibility studies, investment proposals, tax management consultants, and more. Apart from the traditional work of performing various types of audits, many CAs serve as Chief Executive Officers, Managing Directors, Finance Directors, Chief Operating Officers, Internal Auditors, and other key positions in various sectors. The demand for qualified, trained, and experienced Chartered Accountants is increasing day by day, and the average earning packages of Chartered Accountants have also steadily increased.
Association with International Professional Bodies:
The Institute of Chartered Accountants of Nepal (ICAN) is a member of the International Federation of Accountants (IFAC), the Confederation of Asia and Pacific Accountants (CAPA), and the South Asian Federation of Accountants (SAFA).
Chartered Accountancy Course:
The CA course is a challenging distance learning program that involves in-depth theoretical education and practical training imparting sound analytical and problem-solving skills to the students. The course is divided into three levels: CAP-I (Six Months), CAP-II (Nine Months), and CAP-III (Three Years, including practical training).
How to Become a Chartered Accountant?
To become a Chartered Accountant, one needs to take the course offered by the Institute, pass its final examination, and acquire three years of practical training. After completing the requirements, one can become a Chartered Accountant and member of the Institute.
Chartered Accountancy Professional-I Level:
The CAP-I Level is for students who want to enter the professional CA course immediately after completing higher secondary education (10+2, PCL, A Level, or equivalent). The duration of the CAP-I Level course is six months.
Eligibility Criteria:
To register for the CAP-I Level, students must have completed higher secondary (10+2) or Certificate level or A level or equivalent examination from a recognized educational institution. Graduates/post-graduates who have scored less than 50% in commerce and less than 60% in faculties other than Commerce and thus were ineligible to register directly in the CAP-II Course (see CAP-II Level registration criteria) can also register for the CAP-I Level. Students who have appeared for the final exam of +2 or equivalent and are waiting for their result may register their names provisionally.
Fee Structure:
The total fee for the CAP-I Level course is Rs. 27,500.00, which can be paid fully at the time of registration or on an installment basis. The fee structure may change on a need basis by the Council. Students need to pay Rs. 15,000.00 at the time of registration and balance Rs. 12,500.00 within 3 months from the date of registration.
Course Curriculum:
The CAP-I Level comprises three papers, namely Fundamentals of Accounting, Mercantile Laws and Fundamentals of Economics, and Fundamentals of Management and Commercial Mathematics and Statistics, each carrying 100 marks.
Eligibility Test:
To be eligible to write the final examination of the CAP-II Level, students are also required to pass the Eligibility Test as prescribed by ICAN. The Eligibility Test is an assessment of the student's knowledge of the subjects covered in the CAP-II Level course. It is usually conducted a few months before the final examination.
The Eligibility
Test consists of objective type questions and is conducted online. The test is of 100 marks, and the passing marks are 50%. Students who fail to secure 50% marks in the Eligibility Test are not eligible to appear for the final examination.
It is essential for students to prepare thoroughly for the Eligibility Test, as it is a crucial factor in determining their eligibility to appear for the final examination. ICAN provides study materials and practice tests to help students prepare for the Eligibility Test.
After successfully passing the Eligibility Test, students can enroll for the final examination of the CAP-II Level. The final examination is conducted twice a year, in June and December. Students who pass the final examination of the CAP-II Level are eligible to enroll for the final level of the CA course, i.e., the CAP-III Level.
Upon completion of the CAP-II level, students can enroll in the final level of the Chartered Accountancy Professional program, known as the CAP-III level. The eligibility criteria for the CAP-III level are:
- Completion of the CAP-II level examination, or
- Possession of a degree from a recognized university with a major in Commerce, Business Administration or Management, with Accounts, Audit or Tax as a major subject and having secured a minimum of 50% aggregate marks, or
- Possession of a degree from a recognized university with a major in other than above with a minimum of 60% aggregate marks.
The CAP-III level comprises of 5 papers, and the subjects are:
- Paper 1: Financial Reporting
- Paper 2: Strategic Financial Management
- Paper 3: Advanced Taxation
- Paper 4: Governance, Risk and Ethics
- Paper 5: Advanced Management Accounting and Information Systems
Similar to the previous levels, students need to pass an eligibility test to appear for the final examination of the CAP-III level. Upon successful completion of the CAP-III level, students will be eligible to become a member of the Institute of Chartered Accountants of Nepal (ICAN) and can pursue a career as a professional chartered accountant.
What are the subjects covered in the CAP-III Level Course?
The CAP-III Level Course comprises of two groups with a total of eight papers as follows:
Group I:
- Financial Reporting
- Strategic Financial Management
- Advanced Taxation
- Advanced Audit and Assurance
Group II: 5. Corporate Laws and Compliance
- Strategic Cost Management and Performance Evaluation
- Case Study
- Advanced Management Accounting and Information Systems
Examination and Eligibility Test: The final examination of the CAP-III Level is conducted twice a year in May and November. Students are required to pass the Eligibility Test as prescribed by ICAN to be eligible to appear for the final examination. There should be a time interval of at least nine months between registration and appearance of the CAP-III Level Examination.
The Chartered Accountancy Professional (CAP)-III Level is the final level of the Chartered Accountancy program offered by the Institute of Chartered Accountants of Nepal (ICAN). The CAP-III level is designed to provide students with advanced knowledge and skills in the areas of financial reporting, financial management, audit and assurance, corporate laws, taxation, cost and management accounting, management information and communication system, and strategic management and decision making analysis.
The CAP-III level consists of eight papers that are divided into two groups: Group I and Group II. The papers in Group I are Advanced Financial Reporting, Advanced Financial Management, Advanced Audit and Assurance, and Corporate Laws. The papers in Group II are Management Information and Communication System, Advanced Taxation, Advanced Cost and Management Accounting, and Strategic Management and Decision Making Analysis. Each paper carries 100 marks.
Before appearing in the final examination of CAP-III level, students are required to pass the eligibility test as prescribed by ICAN. The Summer Examination is held in the first week of June, and the Winter Examination is held in the first week of December every year. To be eligible to appear for the CAP-III level examination, a candidate must comply with the following conditions:
- Completed the prescribed period of Articleship (3 years) or has yet to serve not more than 12 months of Articleship (practical training) prior to the first day of the month in which the examination is held.
- Passed the Eligibility Test Scheme.
- Two years elapsed from the date of registration in CAP-III Level.
After successfully completing the CAP-III level course, an individual should apply for membership with ICAN. Only those who are members of ICAN can use the designation "Chartered Accountant" in full or "CA" in brief and can practice Accounting Profession after obtaining the Certificate of Practice.
Scholarship Information:
ICAN offers various scholarship programs to support students pursuing the Chartered Accountancy course. The scholarships are awarded based on the student's academic performance, financial need, and other criteria set by ICAN.
Some of the scholarship programs offered by ICAN include:
- ICAN Scholarship Program: This program is designed for students who have scored excellent grades in their examinations and have financial difficulties. The scholarship covers tuition fees and examination fees.
- ICAN Endowment Fund Scholarship: This scholarship is awarded to students based on academic merit and financial need. The scholarship covers tuition fees and examination fees.
- ICAN Student Loan Scheme: This scheme provides financial assistance to students who are unable to pay their tuition fees. The loan is granted on the basis of academic performance, financial need, and other criteria.
- ICAN Corporate Scholarship Program: This program is designed for students who are sponsored by their employers. The scholarship covers tuition fees and examination fees.
- ICAN Foreign Scholarship Program: This program is designed for students who want to pursue their studies abroad. The scholarship covers tuition fees, living expenses, and other related expenses.
ICAN encourages students to apply for these scholarship programs and provides assistance in the application process.
Student Exchange Programme:
ICAN provides opportunities for students to participate in student exchange programs organized by SAFA member bodies. The program provides students with exposure to international standards and practices and enables them to develop their skills and knowledge in a global context.
Seminars, Conferences, and Counseling:
ICAN organizes various seminars, conferences, and counseling sessions to provide students with knowledge and skills related to financial matters, taxation, and other contemporary topics. These programs also provide an opportunity for students to interact with professionals and experts in the field.
Career Options for Chartered Accountants:
Chartered Accountants have a wide range of career options in both public and private sectors. Some of the career options for Chartered Accountants include setting up their own practice, working as managers and policymakers in public and private sectors, working in NGOs or INGOs, acting as trustees, advisors, consultants, or representatives for financial matters, designing and implementing accounting systems, undertaking capital projects and feasibility studies, and advising on matters related to mergers and acquisitions of businesses.
