After completing CA intermediate-level, students join for article ship training. Chartered accountants tend to experience the dilemma of choosing one from two roads that diverge in Yellow-wood. CA intermediate-passed students can work in statutory, internal and tax audits. The students think that all the subjects are good for securing high marks in the CA final examination. The problem is the specialisation takes the students to the top management roles. The tax department deals with numbers and other departments. Statutory and internal audit professionals work with numbers. Both departments are good at learning the subjects in the CA final Examination. CA’s final examination has six subjects.
Financial reporting, advanced financial management, advanced auditing, assurance and professional ethics, Direct tax laws and international taxation, indirect tax laws, and integrated business solutions are the six subjects in the CA final-level examination. The students working in statutory and internal audits learn the subjects that are present in group one. The students working in tax audit derive knowledge on the subjects in group two. Integrated business solutions test the knowledge from multiple subjects. Students with knowledge in finance, corporate laws, business strategy, taxation, accounting, auditing, and management find the integrated business solutions subject in CA final-level easy. The blog intrigues the readers with information on top personalities in 2024 and the convocation ceremony of 2024. The article ship training period is for learning the subjects and gaining the specialised knowledge in the focused area. The knowledge of financial reporting and investment provokes leadership skills.
ICAI Convocation Ceremony 2024:
ICAI conducted the convocation ceremony of qualified chartered accountants on July 7 2024. In this ceremony, the certificates and membership were issued to around 10,000 individuals. The program was addressed virtually by the ICAI president CA. Ranjeet Kumar Agarwal and Shri TV Mohandas Pai from Bengaluru. The regional and central council members from each location presented the certificates to the newly qualified chartered accountants. ICAI emphasises gender equality and technological advancement. Of the total qualified members, 30 per cent are female candidates. ICAI trains the students to update their knowledge of new technologies like artificial intelligence, forensic accounting, international taxation and risk management. ICAI also announced the change of the examination system. CA foundation and intermediate will now happen three times a year. These professionals play a crucial role in the different sectors of the Indian economy.
Difference between statutory, internal and tax audits:
Statutory and tax audits deal with the examination of financial records. The data and documents are the same but the objectives, entities involved and the scope are different for both the audits. Tax audits check tax compliance and calculate GST and corporate tax for the listed companies. Statutory audits check the financial statements, apply accounting standards and prepare financial reports. The following points explain the difference between statutory and tax audits.
- Statutory audits provide assurance to shareholders, regulatory authorities, and creditors.
- Statutory audit is conducted by audit firms or independent auditors. Statutory auditors work as external auditors. The independence ensures impartiality and objectivity in the audit.
- In entities listed in the stock exchange, receiving funds from the government and large size private company statutory audit is made mandatory as per the law.
- The Internal Revenue Service in the US and HM Revenue and Customs in the UK conduct tax audits. Government agencies are involved in tax audits in foreign countries to ensure the tax payment.
- Taxpayers are questioned after tax audit depending upon the specific issues, and red flags identified through automated systems and data matching.
- The objective of the tax audit is to check the accuracy and completeness of the tax calculations. The taxpayer’s reported income, credits, deductions, and tax-related items should match the compliances.
- Statutory audit is conducted according to the Companies Act 203. Tax audit is conducted according to the Income Tax Act, of 1961.
- A statutory audit is a compulsory one. A tax audit is conducted if the turnover of the assessment reaches a specific limit.
Top personalities in the internal audit:
Internal auditors play a crucial role in corporate governance and risk management. Here is a list of internal auditors rocking the profession of auditing in 2024.
- Satynanda Prabhu is the head of internal audit at Ujjivan Small Finance Bank. He has four decades of experience. Satyananda Prabhu handles the internal audit processes and ensures the standards and operational efficiency.
- Vaman Shenoy is head of the internal audit department of HDFC securities. He has 29 years of experience. He ensures the reliability and safeguards the assets of the company.
- Anantha Raman R is the head of internal audit at Kotak Mahindra Bank. He has 32 years of experience. He is evaluating the internal control system of the Kotak Mahindra Bank. He is one of the top internal auditors in 2024.
- Rajagopalan Ranganathan is the head of internal audit of RBL Bank. He has 35 years of audit experience. He is following compliance with regulatory frameworks and ensuring the audit functions.
- Alagarsamy AP is the head of internal audit at Toyota Financial Services India. He has three decades of experience. He is one of the top internal auditors of India.
Top chartered accountants as entrepreneurs:
- Kumar Manglam Birla is an entrepreneur with a CA background from India. His estimated net worth as of 2024 is 1970 crores USD. He is active in contributing his values to philanthropy, education and health.
- Deepak Parekh is the chairman of the HDFC group. His net worth is 5.84 million USD. He is active in contributing values to corporate social responsibility, and advisory roles in the Indo-US CEO forum.
- Motilal Oswal is the entrepreneur with CA qualification. He is the managing director and founder of Motilal Oswal Financial Services. He is one of the richest chartered accountants from India.
- Rakesh Jhunjhunwala is a stock trader and investor with CA qualification. He is the wealthiest person with an estimated net worth of 5.8 billion USD as of May 2022.
- Naina Lal Kidwai is the country head and group general manager at HSBC India. She is a banker with an estimated net worth of $ 20.82 Million.
Final Words
The names of internal auditors and entrepreneurs are inspired by the newly qualified chartered accountants. The growth and achievement of the professional is the story that attracts young minds.
