What professional work a CA can approach for?

 

Can a Member in Practice form a Company and use it for Auditing projects?

NO

A Member in Practice can only form the following to Practice as a Chartered Accountant specifically for Audit.

A member in Practice can approach or Undertake Professional work (allowed as per the institute, mentioned in members who are deemed to be in practice)

• Being a CA in Practice as a Sole Proprietor.

                  OR

• Being a CA in Practice as a Partner of the Partnership firm(Individuals allowed to be partners in a CA Firm has been mentioned in Clause 4 Part I Schedule 1 of the Act)

                  OR   

• Being a CA in Practice as a Partner of the Limited Liability Partnership.

 

When do call a Member to be in Practice? Or when is a member deemed to be in practice?

“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-

 

• engages himself in the practice of accountancy; or
• offers to perform or performs service involving,

1. The auditing or verification of financial transactions, books, accounts or records,

Or

1. The preparation, verification or certification of financial statements(Balance sheet, P/L Statement, Cash Flows etc)

Or

1. Holds himself out(to represent oneself) to the public as an accountant; or

 

• renders professional services or assistance in matters relating to accounting procedure or recording/ presentation/ certification of financial facts or data; or

 

• Renders such other services as, in the opinion of the Council, are or may be rendered by a Chartered Accountant in practice.

The Council has passed a resolution permitting a Chartered Accountant in practice to render entire range of “Management Consultancy and other Services”.(the Below list is not part of syllabus for TYBAF, But mentioned for better understanding and clarity of Students)

 

The expression “Management Consultancy and other Services” shall not include the function of statutory 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-

 

1. Financial management planning and financial policy determination.

 

1. Capital structure planning and advice regarding raising finance.

 

1. Working capital management.

 

1. Preparing project reports and feasibility studies.

 

1. Preparing cash budget, cash flow statements, profitability statements, statements of sources and application of funds etc.
2. Budgeting including capital budgets and revenue budgets.

 

1. Inventory management, material handling and storage.

 

1. Market research and demand studies.

 

1. Price-fixation and other management decision making.

 

1. Management accounting systems, cost control and value analysis.

 

1. Control methods and management information and reporting.

 

1. Personnel recruitment and selection.
2. m) Setting up executive incentive plans, wage incentive plans etc.

 

1. Management and operational audits.
2. Valuation of shares and business and advice regarding amalgamation, merger and acquisition.
3. Business Policy, corporate planning, organization development, growth and diversification
4. Organization structure and behavior, development of human resources including design and conduct of training programmers, work study, job-description, job evaluation and evaluation of workloads.
5. Systems analysis and design, and computer related services including selection of hardware and development of software in all areas of services
6. Acting as advisor or consultant to an issue, including such matters relating to Drafting of prospectus and memorandum containing salient futures of prospectus, and Preparation of publicity budget, advice regarding arrangements for selection of

(i) ad-media,

(ii) centres for holding conferences of brokers, investors, etc.,

(iii) bankers to issue,

(iv) collection centres,

(v) brokers to issue,

(vi) underwriters and the underwriting arrangement

(vii)Advice regarding selection of various agencies connected with issue, namely Registrars to Issue, printers and advertising agencies.

1. Investment counseling in respect of securities
2. Acting as registrar to an issue and for transfer of shares/other securities.
3. Quality Audit.
4. Environment Audit.
5. Energy Audit.
6. Acting as Recovery Consultant in the Banking Sector.
7. Insurance Financial Advisory Services under the Insurance Regulatory & Development Authority Act, 1999, including Insurance Brokerage.