The Institute of Chartered Accountants of India
Draft Recommendations of the Group constituted to Review the Entry Requirement for Chartered Accountancy Course
Proposal I: Exemption to Graduates/CWAs/CSs from appearing in Common
Proficiency Test (CPT)
The Group felt that the present scheme of 10+2 examination or its equivalent as the minimum entry qualification is quite appropriate as this is the stage when a student generally decides about the career which he/she wants to pursue. In the present scheme, the entry level is only through the CPT route. However, it was felt that the graduate students who intend to pursue the Chartered Accountancy Course should be given exemption so as to give due consideration to the knowledge gained by them during their degree course. Keeping in view of the fact that a large number of students join the Chartered Accountancy course through the graduation stream having varying degrees of educational standards in different subjects or combination of subjects or having different nomenclatures like Bachelor of Business Administration (BBA), Bachelor of Business Finance (BBF), Bachelor of Management Studies (BMS), Bachelor of Business Economics (BBE), etc, it was recommended that graduates who have studied any three full papers of 100 marks each out of Accounting, Auditing, Law, Economics, Management and Taxation may be considered as “Commerce Graduates”.
Recommendation of the Group
Common Proficiency Test (CPT) may be exempted for candidates who –
(i) are commerce graduates/post-graduates and have studied any three full papers of 100 marks each out of Accounting, Auditing, Law, Economics, Management and Taxation and passed the graduate/post-graduate examination by securing in the aggregate a minimum of 50% of the total marks.
(ii) are non-commerce graduates/post-graduates who have passed the graduate/post-graduate examination by securing in the aggregate a minimum of 55% of the total marks in the examination,
(iii) have passed the Final examination conducted by the Institute of Cost and Works Accountants of India or by the Institute of Company Secretaries of India, set up under the Cost and Works Accountants Act, 1959 (23 of 1959) or the Company Secretaries Act, 1980 (56 of 1980) respectively.
Proposal II: (i) Candidates who are exempted from CPT be allowed direct entry
to articleship; or
(ii) Enrolment to Articleship after passing either of the Groups of
The issue deliberated upon was whether such students who are exempted from appearing CPT should be allowed direct entry to articleship without waiting to clear IPCC Group I as is being the case of CPT qualified students, who have to clear Group I of IPCC before commencement of their articleship. Members were of the opinion that providing the abovementioned persons direct entry to articleship would not be fair to the CPT cleared students. It was also felt that earlier when the abovementioned persons were allowed direct entry to join articleship, though there were a huge number of articles but the requisite quality for articleship was missing. Therefore, if the abovementioned persons would also be allowed to commence articleship only after passing either of the Groups of IPCC examination, then the quality of students would improve. Also, non-commerce graduates do not have prior exposure to subjects such as income-tax, accounting, auditing etc which are part of the IPCC syllabus, and thus it would be difficult for them to integrate their theoretical knowledge with practical training. Hence it was felt that such students should not be allowed direct entry to articleship.
The Group further noted that the requirement for commencement of articles only after passing Group I of IPCC examination might be restricting the number of students joining the practical training. The Group also noted that the Council, at one of the meetings held last year, has allowed PE-I students, who have passed either of the Groups of PE-II, to commence their articleship. Hence, it was considered that students may be allowed to enter into practical training after passing either of the Groups of IPCC.
Recommendation of the Group
It was decided to recommend that both graduates as well as CPT passed students would be allowed to commence their articleship only after passing either of the Groups of IPCC Examination.
Proposal III: Provisional Registration for Students pursuing Graduation
The Group felt that for attracting the students who are pursuing their Graduation course, students may also be allowed to register for IPCC Course provisionally during their final year of graduation. This was considered keeping in mind the fact that the graduate students are late entrants to the Chartered Accountancy course and should be given an opportunity to appear for the IPCC Examination as soon as they appear in their graduation course. All such students will have to undergo theoretical education for a period of 9 months as per the present scheme. But they should be allowed to register for articles only after submission of satisfactory proof of their having passed the graduation course and either of the Groups of IPCC Examination.
Recommendation of the Group
It was decided to recommend the students pursuing their final year of graduation, to be allowed for provisional registration to the IPCC course. All such students will have to undergo theoretical education for a period of 9 months as per the present scheme. But they should be allowed to register for articles only after submission of satisfactory proof of their having passed the graduation course and either of the Groups of IPCC Examination.