Confused between CA versus CS?

By Soma Chaturvedi

What is the most popular career choice for a commerce student? Perhaps, chartered accountancy is to a commerce student, what engineering or medicine is to his science counterpart. If not MBA, the almost natural course of action for commerce students is to make an attempt at a career in Chartered Accountancy (CA) or Company Secretary-ship (CS).

Though CA is a popular option with an evergreen appeal, CS has its own demand. Nevertheless, students often find themselves confused when looking to make a choice between CA and CS. You may find it interesting to refer to the views and concerns expressed by participants in a recent discussion around the subject at our vibrant online student community - Shiksha Café

While both the courses may appear similar in their packaging (foundation course, intermediate and final exam), they train students into two different areas of specialization, and therefore, lead to different job prospects. Now, while CA has ‘accountancy' as a given in its name, the ‘secretary' in CS often misleads people who have no idea about the course.

Taking a cue from a comment in our online discussion expressing concern over the course being "unsuitable for women" and involving erratic work hours, it must be clarified that a course in CS prepares one for a perfectly respectable corporate career. While it's not apparent from the name of the course, CS entails an in-depth study of company law preparing a candidate for a responsible advisory role in guiding corporates as legal entities.

Drawing out the basic distinction between the two courses, Arun Dev, chief advisor - Q&A at Shiksha Café, explains, "Chartered Accountants enjoy a statutory monopoly in audit of financial statements under the Companies Act, 1956, Income Tax Act, 1961 and various other statutes in India. Financial statements audited by a chartered accountant are presumed to have been prepared according to GAAP in India (otherwise the audit report should be qualified). Whereas, the major contribution of Company Secretary (CS) is in corporate sector. CS is designated as an officer under the Companies Act and is an important professional aiding the efficient management of the corporate sector. CS has to interact, coordinate, integrate and cooperate with various other functional heads in a company."

He adds, "ICAI is the only licensing cum regulating body of the financial audit and accountancy profession in India, whereas, ICSI is the only recognized professional body to develop and regulate the profession of Company Secretaries in India. So, both courses are good and have tremendous market demand, but the most important is to understand one's interest and then choose the appropriate course."

Aru Chopra, chief advisor - Q&A, talks about the powerful "influence" that society tends to have over an individual's career decision, where competing with others irrespective of their own targets and goals, students land up with wrong career decisions.

It is advisable that students do an introspection to evaluate their abilities and interests to understand if they match the requirements of a certain course of study so that they are happy with their decision later. It's also important to research on the job prospects of a career to get a feel of what the future holds for you.

Our empanelled Shiksha expert and career counsellor, Kumkum Tandon spells out the requirements and prospects of both CA and CS to help aspirants make a suitable choice. Even if you have some idea about what you want to do, consider reading her articles to remove your doubts and make an informed decision. Below are excerpts from related articles.

For aspiring Chartered Accountants

Chartered Accountancy can be pursued after Class 10+2 or graduation. After Class X, a student has the option of registering with the Institute of Chartered Accountants for the Common Proficiency Test (CPT). A student who has passed Common Proficiency Test (CPT) and Senior Secondary Examination (10+2 examination may join the Professional Competence Course (PCC). Simultaneously, the student must register for articled training for a period of three-and-half years. Final exams of the Board can be taken in the last year of article-ship. Read more

In the industry, CAs are generally found in decision making positions of the finance division. CAs are involved with planning and financial strategies, preparing prospectuses for share issues, managing pension funds and long-term investments, investigation of prospective investments, merger or takeover. Read more

For aspiring Company Secretaries

After +2 a student is eligible to take the Foundation Course. The exam can be taken twice a year, in June and December. Candidates who pass the Foundation exam are eligible to seek registration as students to the Company Secretary-ship course. The course completes after a preliminary, intermediate and final examination.
Admission is open to anyone who has passed the graduate examination of a university in India or any other equivalent qualification or those who have taken the foundation examination. Read more

A Company Secretary has been recognised by various enactments as one of the principal officers of the company. In fact, his role starts from the very moment when the idea of formation of a company is conceived. The role of a company secretary is one that places him in a unique position vis-a-vis the Board of Directors. However, a company secretary's actual function varies from company to company. Company Secretaries, in both public and private companies, deal with aspects of management which relate to the company as a legal entity. Read more

Other interesting reads:

- Institutes offering CFA, CPA, CIMA courses

- Institutes offering CA courses