The Institute of Chartered Accountants of India is planning to introduce a new syllabus for CA students from November, or at least by May next year, to improve standards and to reduce the dropout rate, according to M Devaraja Reddy, President of the Institute.
He was speaking in Visakhapatnam on March 12 after participating in a programme on Start-up India policy organised by the institute. He said at present, even those who passed SSC exam were appearing for the entrance test which consists of multiple choice questions for 200 marks.
“So a number of non-serious candidates are also getting into the course and later dropping out. To improve standards, we have decided that the minimum qualification for writing the entrance exam is plus two (or twelfth standard or intermediate course) and those who have passed degree exam can directly enroll themselves for the CA course. Further, the entrance exam will now carry 400 marks - 200 marks for multiple choice questions and 200 for subject. We hope this will address the problem,” he explained.
He said the proposals to revise the syllabus and exam rules had been sent to the Ministry of Corporate Affairs and later they would be referred to the Ministry of Law for approval. In all probability, the new syllabus and new rules may come into effect from November this year or by May next year, if there is delay.
He said there was mushrooming of CA coaching institutes, but the institute did not have any powers to control them. These institutes were also misleading parents as well as students and therefore the institute was also opening career counselling centres to guide them properly.
Devaraja Reddy said that there were at present 2,50,000 CAs in the country and 30,000 Indian CAs were working in foreign countries and acquitting themselves very well.
“In the next 10 years, at least 10 lakh CAs will be required and therefore there is great demand for the course but we must maintain the highest professional standards,” he said.
In response to a question on the Kingfisher Airlines issue, he said the role of the auditors was nil in the affair and the banking system would have to be streamlined to prevent such things.