PART 2 : GROUP 2
Advanced Management Accounting
- Product costing using new technique(Just in Time, Kaizen Costing and Activity based Costing) : Business products and services have their costing done around the traditional costing techniques like cost unit, cost center, profit center. The new mechanism which aims at the continuous cost reduction is achieved by JIT, Kaizen Costing and Activity based costing. A CA is qualified to conduct above with zeal and focus as they know these work in their practical internship.
- Business decision making : Every business has to take many short term decisions like make/ buy/ outsource. It can be replacement of asset decision/ shut down decision/export decision/ domestic sale decision. CA course is so beautifully made so that these practical issues are taught at both Intermediate level and Final level in CA curriculum.
- Budgeting of a company on short term and long term needs : Budgeting on short term basis like Cash budget, monthly budget, Functional budget and annual budget is required by the different corporates for various needs. A CA is competent to create, analyze and recommend to the business as an employee or as a consultant.
- Business analysis using Standard Costing : Actual cost and Actual revenue vary with the standard cost and Standard Revenue. CA is capable to measure same. The difference between actual cost and standard cost for the material, labour, overhead can be measured correctly and effectively using the standard costing.
Information System Control & Audit
- ERP audit : Enterprise Resource Planning( ERP) for all the business modules relating to the production, accounting and finance, marketing is required for the big businesses. It is usually customized according to the client’s requirements. A chartered accountant will help to lay down the production system according to the client’s needs and legal requirements.
- System Audit : System audit according to the client’s specification and need of the industry is done by the CA having expertise in IT after understanding the basic requirements of the clients. System audit allows the business to know whether the business is running properly according to the business requirements.
- Information System control : An auditor must do the information system control audit of its client. It means he must do all control system audit as required by the top management. In CA curriculum, a student is taught Information System at both Intermediate level and at Final level.
- Information Technology Laws : Information Technology Act 2008 read in line with the global cyber laws are required to be adhered by the Chartered accountant. This requires following the required legal interpretation in the strict sense as written in the IT Act of India.
Direct Tax Laws
- Computation of returns of various entities (company, individual, firm , AOP) : Business income is required to be computed for the individual both resident and a non -resident. Likewise the computation of the business income of the companies both domestic and foreign companies are required to be done.
- Computation of returns of special entities (Cooperative Society, Trust, NGO): Non- profit and social entity has to file an annual return for Cooperative Society, Trust and NGO. This requires computation of the total income for the above entities and its taxation as per Income Tax 1961.
- Appearing before appellate authorities in cases : The different appellate authorities like Income Tax Appellate tribunal (ITAT), ACIT, CIT, High Court and Supreme Court are required to settle the questions of law and fact. CA in practice are doing above works on behalf of the different clients.
- TDS and TCS compliance: TDS and TCS compliance is an area where the income tax authorities are very vigilant. A Chartered Accountant can develop it in to a good practice area.
- Transfer pricing: International transfer pricing is an area of huge opportunities where the corporate across the globe are interested to do with Indian companies due to emerging growing areas of business in India.
Indirect Tax laws
- Service Tax Audit, Compliance and Returns: Service Tax is a huge practice area for CA. It includes service tax compliance by the Service Tax Act, filing of the Service Tax Return and conducting Service Tax Audit by a qualified CA.
- Excise valuation and audit: Excisable goods are valued on the different basis in the various scenario. Excise Audit is also required to be done. CA is competent to do same with full capability which he has learnt in ICAI internship.
- Valuation of Custom Goods: Valuation of Custom goods using different rules are required to be done by the custom valuer. There are various types of custom duties which are required to be assessed for the custom goods. This is an emerging practice area for young CAs.
- GST : Goods and Service Tax (GST) is a new area coming in India with effect from 1/4/2017. India will be one tax country from Indirect tax angle. There is a huge opportunity because with a change new opportunity comes as it will start from the beginning for all the Indian states.