The new scheme of ICAI emphasises technology and skill-based evaluation. The subject, objective and self-paced module questions test the real-time skills of the students. The self-paced module, MCQ assessment, IT papers, eBooks with audio features, BoS mobile app and virtual learning pay way to technology-based learning. The standards in the new curriculum are as per the National Education policy-2020 and International education standards. Paper nine is the elective subject in CA and ACS. In ACS the elective subjects are banking law and practice, intellectual property rights laws and practices, insurance law and practice, forensic audit, labour laws and practice, direct tax law and practice, valuations and business modelling, and insolvency – law and practice. Paper six in the CA final course consolidates the knowledge gained from all seven papers. Previously it was an elective paper. Now it is a multi-disciplinary case study subject focused on strategic management. The blog highlights the subjects taught in the open book examination and assessment of the open book examination.
Technical and application knowledge in paper six:
Paper six accumulates the application and technical knowledge of the students. The subjects covered in the integrated business solution are accounting, auditing, finance, corporate laws, business strategy, financial reporting, advanced auditing, and advanced financial management. The technical knowledge of the subject involves the following processes: integrated business services, business systems, business processes, and business solutions. The integrated business solution connects the different departments, reduces manual work, automates the multiple software processes, enhances the quality of the data repository, increases productivity, collaborates data with multiple departments, improves decision-making skills, and reduces IT costs. The advantages of the seven subjects in paper six are discussed below:
Direct tax laws and international taxation:
The chairman of the Central Board of Direct Taxes, Nitin Gupta, says that technology increases direct tax revenue. He says that in December, the CBDT sent e-mails to around 44 lakh professionals for a mismatch of information in the income and financial transactions. The budget 2024-25 emphasised the importance of direct tax revenue. The revenue generation is possible with the help of the technology. He also says that the budget after the election will decide the tax concessions and extensions to the manufacturing units.
Financial reporting:
Artificial intelligence, machine learning, cloud and data analytics help automate the workflow and analyse the financial data. Chartered accountants spend less time formatting the data as the technology does it. Machine learning algorithms extract and format the data to prepare final statements and financial reports. Chartered accountants spend less time in formatting and more time in analysis due to technical advancement.
Advanced financial management:
The accountants enter the financial data regularly. Automation and cloud technology help get insight into real-time data. Accurate data backs the auditing professionals with reliable financial statements. Advanced financial management turns chartered accountants into strategic business advisors.
Advanced auditing, assurance, and professional ethics:
Technology improves the audit quality and reduces the flaws in the financial statements. By quality, the technology contributes to the auditing profession and its ethics.
Indirect tax laws:
Corporates use RPA, ML and AI to manage sales tax reconciliation, tax credit management and exemption certificates. The GST adds value to the company. Technology helps corporations avoid penalties and fulfil tax compliances.
Corporate and economic laws:
The corporate and economic laws provide insights into the subject with practical application. The students understand the case study and apply the legal points.
Strategic cost and performance management:
Strategic cost management subject knowledge prepares the chartered accountants to understand the global market supply chain. Chartered accountants create value for the customers and shareholders with strategic cost management and performance evaluation. Core competencies analysis is the source of a business’s competitive advantage.
Open book examination preparation tips:
The students confused about preparation tips can follow the following tips.
- The students are allowed to take approved study material and memory aids inside the exam hall. Using the right study material and memory tactics to clear the subject.
- The students find the exam structure as new, but the subjects are old. The exam scanner of the seven subjects reveals the previous year’s important questions. By focusing on these questions, the students can get the answers easily.
- The students must keep a check on the latest amendments. The open book examination tests the application knowledge. So, questions based on the latest amendments explain the importance of bringing change in the previous law. Focus more on the latest amendments in association with the case study.
- The students can have a dictionary to understand the vocabulary. Open book examination also increases the writing and language skills of the students. Writing the answers in your own words enhances the self-confidence of the students. Improving the English language is one of the preparation tips that helps on the examination and interview.
- The students can use some marking techniques. The student can use different coloured pens to understand the points. The student can use red, pink and blue to tell the relevant, supporting and concluding point. The technique of remembering points through colours helps to complete the paper on time.
- The examiners prefer to use the maximum knowledge of the students. The answer to a single question can be from different chapters. The solution to the problem has to be integrated into different chapters. The arguments and supporting answers come from organised resources. Arrange the study resources in such a way that it helps to increase your memory.
- The students can prepare a summary of the subject along with notes on important chapters. Prepare a map of the concepts with relationship or connection. Include the page reference for the concepts.
- Also, keep in mind that the extra materials will distract the student. So, learn the syllabus thoroughly and take the relevant learning materials.
Paper six evaluation:
The council of ICAI had decided that the examination would be a four-hour process. The question paper pattern is 40 marks with MCQ and 60 marks with descriptive questions. The question paper carries 25 marks for each case study. The ICAI’s new curriculum introduced new courses on artificial intelligence, psychology, prosecution and philosophy to the students. The new structure and subjects benefit the students by raising them to international standards.
Final Thoughts:
Strategic management helps the chartered accountants to align the cost, competition and organisational goals. The economic uncertainty poses questions to the management team. The concerns arising out of uncertainty demand efficient resource allocation and competitive analysis. Paper six prepares the chartered accountants for the technical and dynamic business environment.
