The Hindu Business Line : Let's reengineer the CA course

THE ICAI is currently talking about a new scheme of education. Looking back, in June 1973 there was the Old Regulation and in October the same year, the New Regulation was born. This New Regulation took different avatars at different stages, moving subjects from the Intermediate to Final levels and vice-versa. Whatever be the change, one thing has never changed — the failures and dropouts.

The ICAI has never been able to satisfactorily explain the poor results. One view is that students must be given some diploma/certificate for the 3-4 years they have spent in the CA course undergoing articleship. Else, at the end of the training period, they still remain what they were at the beginning of the training if they do not pass.

College system

The system of CA education is postal. The ICAI must seriously look at whether this coaching method is the root cause for the poor results. Preferably, some outside agency must evaluate whether this form should be given a go-by and a college system introduced. The study should cover, in addition to CAs, the views of students, parents and educationists.

There are a number of professional courses where entry is tough (and many times more pricey), but one does not hear of large-scale failures as in the case of the CA course. Students who have graduated from such institutions have done the country proud.

If absence of full time education is the reason for large-scale failures in CA, then a change over to a collegiate form should be considered. If it is good for those pursuing medicine, engineering and management it will be so for CA students as well.

Knowledge level

Another area of concern is the high standard of the CA exams. One recalls that in the first avatar of the New Regulation, the math paper was often at the postgraduate standard.

There was once a problem in the Final cost accounting paper which took a senior professional, who took classes in the Institute, 90 minutes to work out in the class, and the second question was related to the first.

One wonders whether the papers are being set with the intention of testing the students' understanding of the subject or for exhibiting the paper-setters' knowledge.

The CA student is expected to have expert knowledge of the subject. The ICAI is issuing guidance notes and standards with frenzy these days. The literature published in the past five years would be at least treble those published since 1949.

These are, per se, difficult to understand even for the practitioners. How can a student, especially an undergraduate, learn these to expert levels and that too by postal coaching?

Since repeated changes to the syllabus, entry levels, and so on, have not been worthwhile as far as the results are concerned, whether a system of college education should be introduced for CA course to ensure expert level of knowledge should be examined.

One objection, though a rather trivial one, to the collegiate form is that it may not be possible to start colleges to the extent required to cater to students joining from different parts of the country. But don't students shift base in order to join medical and engineering colleges?

Similarly, for a student desirous of pursuing the CA course, joining a CA college wherever it may be should not be a problem.

Core subjects

Are CA students burdened with too many subjects? In the old regulation, 50 marks each were allotted for statistics and costing at the Intermediate level. Today, the syllabus has accounts, costing, auditing, company law, income-tax law, financial management, mercantile law, and so on. Should one look at a course which has only core subjects — accounting, auditing, basic skills in computer, and elementary law?

Post-qualification, the student can get into areas of their choice — tax, financial management, and so on. Akin to, say, an M.Tech or MD. Why make undergraduate courses so difficult.

Revaluation

The ICAI prides itself for declaring results on the specified dates. We understand that there was a central valuation system also. If the ICAI is confident of its valuation system, then it should allow a system of revaluation too. Let the student who feels he has done well but has been failed unfairly be given a chance to apply for revaluation.

The immediate argument against revaluation is that there will be innumerable applications — which in itself is a sad reflection of the confidence level in the system.

But this cannot be held against the student. Rules may be made to make it workable, but there is a crying need to instil confidence in the students, and more amongst their parents, that the system of valuation is fair and proper. Nothing can do this better than a transparent system of valuation.

May-November exam

The ICAI has been married to the May-November pattern of exams for long. With computerisation, one has to think of an online system of examination in which the student can appear for the exam whenever he wants to, as in the US.

Also, a waiting period of six months for a failed student is too long considering that his employment potential would be fast diminishing.

Entry level

The Institute has proposed a reasonably complex method. Register when in 10th, write entrance exams when in 12th, do articles, write one exam after a lapse of time and another a few months before the completion of the articleship.

This is nothing but old wine in new bottle. It is not explained why the system introduced just a couple of years is being jettisoned. Was it ill-advise or has the ICAI learnt a bitter lesson by experimenting with students' careers.

Originally only graduates entered the course; then, the students could pass the Foundation exam and join CA when they were in the second year of graduation.

The student had to change over to an evening college and then pursue articleship. Regulations about working hours to suit this were also put in place. Undergraduates are once again being welcomed to articleship, with the exams coming during the period of training itself.

It is difficult to understand how undergraduates can understand and appreciate the intricacies of, and complexities in, auditing, law, finance, business economics and tax.

Graduation must be the minimum qualification to enter the course.Graduation is basically to ensure that students are not denied a basic qualification (as well as the pleasure of college life). It should not turn out that he is neither a graduate nor a CA.

Articleship

One can never say whether articleship is a boon or a bane. The students no doubt do get some work experience. But it is debatable if it is necessary for passing the exam?

The ICAI has also prescribed a form to be filed at the completion of the articleship, as to the number of hours the student spent on various areas of the profession. In many a case, the student does the same work for the same client all the years. In fact, there is this good rule of secondment of articleship, where a student can be seconded to another CA for a better and different experience. How many cases of secondment happen in a year?

The extent and quality of practical training is not monitored by the ICAI, which any way is impossible. While the system may give some work experience, if the overall objective is to getting the student to pass, articleship must be stopped. Post-qualification, a one-year apprenticeship may be considered. This makes available qualified hands to professionals to help them discharge their functions better.

Also, the nomenclature of articled "clerk" must be given up. It is probably a legacy of the British that we are still clinging to. They could be called "trainees", instead.

The word "articled" has also lost its significance since the system of audit clerks is not in vogue now.

Let us, therefore, try out the college method of education for the CA course, remove the system of articleship (or consider it after passing the Final exam), introduce revaluation and see if these measures will help improve the lot of the CA students.

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