ca - a complete business solution provider

8/3/2019 CA - A Complete Business Solution Provider

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www.pkfindia.in

PKF Sridhar

&

Santhanam

Confidential Not for Circulation

CA A Complete Business Solutions Provider


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PKF Sridhar & Santhanam www.pkfindia.in


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CharteredAccountant is a designation given to Accounting Professionals who become members ofthe Institute of Chartered Accountants of India (ICAI), by passing the prescribed examinations, threeyears of practical training (known as articleship) and fulfilling other requirements

A member of ICAI may either be an Associate Chartered Accountant (A.C.A.) or a Fellow CharteredAccountant (F.C.A.). An A.C.A can become a F.C.A. after 5 years of continuous service or practise.Further to engage in public practice, a CA has to obtain a Certificate of Practice from the Council ofICAI. Only members holding a Certificate of Practice may act as auditors or certify documents requiredby various tax and financial regulatory authorities in India.

Introduction to Chartered Accounting profession

Primary Role of a CA

Statutory Audits

Validation of financials as

per GAAP

Tax Audits

Ancillary Role of CA

Management Assurance

Risk Managament

Corporate Finance

Business Valuation

System Audits

Corporate Law

Forthcoming Roles

Social Audits

Audit of Government

Welfare schemes (NREGA,etc.)

Environmental Audits


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Skills and Certifications for business functions

Apart from the primary duties like statutory and tax audits, chartered accountants &

professionals holding certifications can provide services like system audits,management accounting, forensic accounting, fraud investigations, etc.

CISA (Certified Information System Analyst) certified professionals have expertise in ITSystem Audits

CIMA (Chartered Institute of Management Accounting) certified professionals providemanagement accounting services

CVIE (Certified Vigilance and Investigation Expert) certified professionals cater to frauddetection and investigations

CIA (Certified Internal Auditor) certified professionals can work on internal audits

CFAP (Certified Forensic Accounting Professionals) for Forensic Accounting

Cost accounting and control tasks can be completed by ICWA certified professionals

CFA (Chartered Financial analyst) perform Financial Advisory roles

FRM (Financial Risk Management) professionals work on financial risk analysis

With Chartered Accountants Qualified with these certifications, a CA firm can provideservices as detailed in the further slides

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Attestation Function

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Corporates have a statutory obligation to get their financials certified by getting them audited to establish theircorrectness. Chartered Accountants have statutory monopoly in audit of financial statements under the CompaniesAct, 1956, Income Tax Act, 1961 and various other statutes in India. Financial statements audited by a charteredaccountant are presumed to have been prepared according to GAAP in India

Companies require certificationsfrom CAs regarding specific

tasks in order to comply with laws

under companies act and otherregulations

Transfer pricing is a specialisedfunction revenue transfer amongbusiness units, which has tax

implications, thus requiringchartered accountants

A CA is responsible forauthorisation of the financialstatements which depict thewholesome financial situation ofthe enterprise for a particularperiod

Statutoryaudit

Certifications

Transferpricingstudies


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Management Audits

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Companies conduct internal audits of their processes, organisational functions to determine their effectiveness. CAfirms can deploy CAs and professionals with certifications like CIA to perform internal audits to evaluate policies,processes, controls, etc. to provide management assurance for the smooth functioning of the organisation

NightAudit

RiskBasedAudit

ScoreCard

IFRS

Night audit involves checking data flowand reconciliation between systems on adaily basis, at the end of day in order tocheck that all the revenues and expensesare properly posted in their relevantheads

Balanced Internal Audit scorecard is anaudit methodology of comparing prevalentpractices against managementexpectations and allocating scores basedon the convergence

Risk based Audit is a method to provideassurance that risks are being managedwithin the organisations risk appetite. A

CA studies processes to detectinefficiencies and unmitigated risks forOptimal utilization of resources

Companies having overseas subsidiaries

need to convert their financials to IFRSreporting format. And with the regulationsto be applicable in India, CAs have their

hands full in helping corporates converttheir financials to IFRS


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Risk Management

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Companies are exposed to different types of risks on a daily basis like market risks, operational risks, regulatoryrisks, etc. Risk Management involves identification & assessment of the risks, quantifying the impact of each risk,and developing mitigation strategies. CA firms can deploy CAs, FRM, CFAP and CVIE professionals for risk

management, forensic accounting, fraud detection to analyse different financial, regulatory aspects, market risksfrom investments, etc. and devise suitable mitigation strategies for the risks

TreasuryAdvisory

RiskAdvisory

Solutions

Regulatory&Compliance

Risk

Sarbanes-Oxley

Compliance

Risk advisory involves risk analysisfor every phase of a businessprocess and the corresponding riskfactors envisaged, which are dulystudied to generate a Risk MitigationReport

CAs study and implement safety

measures for the risk of non-compliance to applicable legal andregulatory requirements

It involves advisory on market risk,design risk management policiesand solutions, advise on accountingand regulatory aspects tocorporates and financial institutions

CAs can form sets of control

requirements to ensure financialreporting in accordance with SOXregulations


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Project Assurance Services

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Project assurance involves identifying activities that are critical for successful completion of the project, monitoringimplementation, cost controls, resolution of issues and risks that preclude successful delivery. CAs, ICWA

professionals can use their expertise for cost controls, process reviews, statutory compliances, taxation, etc.

ProcessReview

Audit ofproject

expenditure

Processmanual

Process review in project managementinvolves review of checks & controls inprocesses to ensure they follow theproject objectives & comply withapplicable regulations, taxationrequirements, etc.

Process Manuals are created or co-created by one or more authors, reviewedby other employees and ultimatelyapproved by a CA

CA is involved in rigorous planning &strategizing cost control measuresthroughout the implementation of theproject. It strives to reduce the risk ofdelayed implementation or failure of the

project




Taxation

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Corporates have to fulfill a plethora of direct and indirect tax liabilities, ranging from income tax, sales tax, servicetax, excise and other duties, VAT, Corporate tax, MAT, etc. depending on the industry, which have to be filedappropriately at different times in a financial year. Chartered accountants are certified and able to manage acorporates tax liabilities appropriately

Direct

Taxation

Indirect

Taxation

Direct taxation includes auditing and filing for income tax, tax oncapital gains, corporate tax, minimum alternate tax, etc.

Indirect taxation includes auditing and filing for service tax, VAT,sales tax, customs, excise duties, etc.




KPO

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Corporates outsource high end knowledge work like accounting, valuation, transfer pricing, research, etc. to KPOs

to save costs. Thus, KPO operations require thorough understanding of accounting, legal and technical aspects ofa companys operations. Chartered accountants fit the bill with their expertise in accounting and hold over

regulatory and taxation aspects

LegalServices

PreparingAccounting

Manuals

AssetsRecord

keeping &verification

ManagementInformation

System

Creditappraisal ofcustomers

Preparation of manualsfor financial reportingand linking expendituretypes to accounts

Designing complianceguidelines for legal andstatutory requirements

Checking the creditworthiness customersfor loan applications,etc.

Tracking andmaintaining records ofassets, depreciationcalculations, location,etc.

Involves maintenanceof MIS data




Financial Advisory

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Corporates require quantitative financial analysis for making investment decisions, to determine optimum mix forraising funds (debt, equity), etc. A thorough hold over financial statements, reports, regulations, latest taxation andregulatory amendments enable Chartered Accountants to provide financial consulting and advise on regulatoryaspects and taxation impact for investment and financing options, thus helping companies factor in the tax impactfor all aspects of a transaction, minimise cost of funds, operate within the regulatory framework etc.

CorporateFinanceAdvisory

Transaction& due

diligenceServices

ValuationServices

Arriving at a fair value of a company based futurerevenue potential, market and competition, operationalhealth, assets and liabilities, etc.

Conducting due diligence of target company to determineorganizational and financial health, deal structuring in linewith agreed ownership pattern, etc

Consulting sevices to clients for investment and financingdecisions to maximise returns with minimum possiblerisk, raising funds with an optimum mix of debt and equityto minimise cost of funds, etc




Business Advisory

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Corporates implementing strategic business plans need business advisory to aid decision making. CAs can use

their quantitative skills and expertise of financial statements and reports to simulate business scenarios, analysethe financial impact of different business structures, projects, processes, etc. and provide data backed reports toaid strategic business decision making

BusinessProcess

Re-engineering

ProcessConsulting

FeasibilityStudy

Analysis and evaluation of proposed projects todetermine financial, technical feasibility & profitability

Audit of processes for various organisational functions,implementation of policies and processes to ensureproper functioning of the organisation with theestablished controls

Analysis and design of workflows and processes tostructural changes in the organisation

C f f C




IT Consulting

Corporates implementing IT systems, especially high end systems like ERP packages, need consulting forimplementation project management, post implementation system audit. CISA certified Chartered Accountantprofessionals can perform a crucial role in business analysis and designing the requirements for implementation of

IT systems. They can perform project management to ensure IT systems are implemented as per requirement, andfinally audit IT systems to provide assurance regarding system conformance and integrity

IT ProjectManagement

TechnologyConsulting

IT Assurance

Ensuring software or system implemented confirmswith the organisations objectives for the system

Advisory on the most suited technologies, softwarepackages and systems to suit the organisations

needs and objectives

Performs system audits to ensure proper systemchecks and controls, data security and integrity, etc.

C fid i l N f Ci l i




CA firms with chartered accountants and professionals having certifications

like to cater all aspects of a business like cost control, fraud investigations,systems, etc. are well placed to cater to provide solutions for all businessneeds

A CA can be safely called a complete business solution provider

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CA A one stop shop for all business needs

C fid ti l N t f Ci l ti




http://dget.gov.in/cirtes/csc/courses/Chartered_accountant.htm

http://en.wikipedia.org/wiki/Institute_of_Chartered_Accountants_of_India

http://www.thefreedictionary.com/chartered+accountant

http://icai.org/post.html?post_id=1817

http://en.wikipedia.org/wiki/Information_technology_consulting

http://pkfindia.in/services.htm#con

http://en.wikipedia.org/wiki/Management_consulting

http://www.investopedia.com/terms/s/statutory-audit.asp#ixzz1f4sRYqgM

http://www.answers.com/topic/tax-audit#ixzz1f4twstNW

http://www.tatacapital.com/TreasuryAdvisoryServices/TreasuryAdvisoryServices.htm

http://www.tallysolutions.com/website/html/charteredaccountants/ca-businessadvisor.php

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ca - a complete business solution provider

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