INFORMATION SEMINAR COMMERCE STREAM QUICK GUIDE TO AUDIT AND PROFESSIONAL CERTIFICATIONS STUDENT HANDOUT th 28 JANUARY 2017
PREPARED BY FAISAL AHMED & FAHAD AHMED JEDDAH, SAUDI ARABIA
INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
WHAT IS AUDIT? • • • •
INDEPENDENT EXAMINATION OF THE FINANCIAL STATEMENTS TO PROVIDE A REASONABLE ASSURANCE THAT THEY ARE FREE FROM MATERIAL MISSTATEMENTS TO ENSURE THAT THEY GIVE A TRUE AND FAIR VIEW TO EXPRESS AN AUDIT OPINION BY SIGNING THE AUDIT REPORT – UNMODIFIED OPINION: (UNQUALIFIED) – MODIFIED OPINION: (QUALIFIED, ADVERSE, DISCLAIMER)
WHO IS AN AUDITOR? A PERSON WHO HAS QUALIFIED THE PRESCRIBED EXAMINATIONS AND UNDERGONE EXTENSIVE PRACTICAL TRAINING UNDER AN AUDITOR: • INDIA – A MEMBER OF ICAI (INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA) • USA – A MEMBER OF AICPA (ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS) • UK – A MEMBER OF ACCA / ICAEW (ASSOCIATION OF CHARTERED CERTIFIED ACCOUNTANTS / INSTITUTE OF CHARTERED ACCOUNTANTS OF ENGLAND & WALES) • SAUDI ARABIA – A MEMBER OF SOCPA (SAUDI ORGANISATION OF CERTIFIED PUBLIC ACCOUNTANTS) • OTHER COUNTRIES – A MEMBER OF THEIR ACCOUNTING BODY
IS A PROFESSIONAL CERTIFICATION = DEGREE? • NO! A PROFESSIONAL CERTIFICATION IS NOT EQUAL TO A DEGREE • BECAUSE THERE’S NO COMPULSORY ATTENDANCE / CREDITS REQUIRED • FINAL MEMBERSHIP IS AWARDED BY AN ASSOCIATION OR AN INSTITUTE SET UP BY THE GOVERNMENT AND NOT BY A COLLEGE / UNIVERSITY • YOU MAY GET A LETTER OF EQUIVALENCY FOR THE COURSES INVOLVED • DEGREE IS A PREREQUISITE FOR CERTAIN CERTIFICATIONS
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INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
MAJOR GLOBAL AUDIT FIRMS – THE “BIG 4” • • • •
ERNST & YOUNG – PRICEWATERHOUSE COOPERS – KPMG – DELOITTE –
(HQ) (HQ) (HQ) (HQ)
UNITED KINGDOM UNITED KINGDOM NETHERLANDS UNITED STATES
MAJOR AUDIT FIRMS IN INDIA • THE BIG4 MEMBER FIRMS – EY (SR BATLIBOI, SV GHATALIA) – PwC (LOVELOCK & LEWES, DALAL & SHAH) – KPMG (BSR) – Deloitte (HASKIN & SELLS, HANSOTIA, CHOKSHI, AF FERGUSON) • GRANT THORNTON INDIA LLP • PKF SRIDHAR & SANTHANAM LLP • BDO INDIA LLP • RSM INDIA • SHARP AND TANNAN • BRAHMAYYA AND CO • AND THE LIST GOES ON … !!
PROFESSIONAL CERTIFICATIONS – HOW MUCH EFFORTS ARE REQUIRED? • • • • • •
GET READY FOR SOME SLEEPLESS NIGHTS NOTHING COMES FOR FREE, YOU HAVE TO EARN IT NOT ONLY FOR THE “TOP ACHIEVERS” SELF STUDY: 200-250 HRS PER PAPER DEDICATION AND HARDWORK GOES A LONG WAY – SKILL & WILL YOU WILL HAVE TO LEARN TO BALANCE WORK / COLLEGE / COACHING / FAMILY & FRIENDS
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INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
WHAT’S NEXT FOR COMMERCE STUDENTS? • REGULAR BACHELORS DEGREE • PLUS LEADING PROFESSIONAL CERTIFICATIONS • INDIAN CA or UK ACCA or USA CPA or any CA – FINANCIAL AUDITOR • USA CIA – INTERNAL AUDITOR • INDIAN CWA or USA CMA or UK CIMA – MANAGEMENT / COST ACCOUNTANT • USA CFE & CAMS – FRAUD & COMPLIANCE ACCOUNTANT • USA CISA or CISM – IT AUDITOR • OTHER QUALIFICATIONS YOU CAN PURSUE USA CFA – INVESTMENT BANKER / FINANCIAL ADVISORS / PORTFOLIO & RISK MANAGERS / FINANCIAL ANALYSTS MASTERS IN BUSINESS ADMINISTRATION (MBA) MASTERS IN FINANCE / MANAGEMENT (MiF / MiM) INDIAN COMPANY SECRETARYSHIP (ICSI)
B.Com + INDIAN CA (NEW SYLLABUS - ROUTE MAP) • • • • • • • • • • •
March 2017 July 2017 Nov 2017 Jan 2018 Feb 2020 pre Articleship April 2020 April 2023 pre CA Final Nov 2023 Jan 2024
CBSE XII Board Exams Join regular college for bachelor’s degree CA CPT Exam. Result in Jan 2018 Register for CA IPCC course (Exam every May/Nov) Pass both CA IPCC groups before Feb 2020 Complete the 4 weeks course on IT & Soft Skills Bachelors done. Join Audit Firm for CA Articleship Complete 3 years of CA Articleship Training Complete the 4 weeks course on IT & Soft Skills Eligible to appear for CA Final exams (every May / Nov) CA Final results declared. Qualified as a CA !!
ARTICLESHIP STIPEND FOR INDIAN CA (Y01, Y02, Y03) • BIG 4s (approx) INR 10K, 15K, 20K • MEDIUM FIRMS (approx) INR 8K, 10K, 12K • SMALL FIRMS (approx) INR 1K, 2K, 3K NOTE: DO NOT CONSIDER DUMMY ARTICLESHIP! Page 3 of 12
INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
MISCONCEPTIONS ABOUT THE INDIAN CA COURSE • INDIAN CA IS THE MOST PRESTIGIOUS AUDIT CERTIFICATION IN THE MARKET (ACCA / CPA IS EASY) – YES: FOR INDIAN MARKET – SAME: FOR ALL OTHER MARKETS • GO-TO PERSON FOR TAX EVASION / LOOPHOLES • QUALIFYING CA MAKES HIM / HER A JACK OF ALL TRADES • CA GETS MONEY FOR SIGNING REPORTS • CA IS DONE IN A COLLEGE • WHICH “YEAR” ARE YOU IN ?
ACCA UK QUALIFICATION AT A GLANCE LEVELS (AS PER NEW SYLLABUS) APPLIED KNOWLEDGE APPLIED SKILLS STRATEGIC PROFESSIONAL - ESSENTIALS STRATEGIC PROFESSIONAL - OPTIONS YOUR ACCA STATUS PROFESSIONAL ETHICS MODULE EXPERIENCE REQUIREMENT
YOUR ACCA STATUS OTHER ADVANTAGES OF PURSUING ACCA
PAPERS (AS PER OLD SYLLABUS) F1 + F2 + F3 (3 PAPERS) F4 + F5 + F6 + F7 + F8 + F9 (6 PAPERS) (P1 & P3) + P2 (2 PAPERS) P4 / P5 / P6 / P7 (2/4 PAPERS) YOU ARE NOW AN ACCA AFFILIATE ONLINE - CONTENT & EXAM Professional Experience Requirement – 3 YEARS PRACTICAL TRAINING + RECORD OBJECTIVES IN ONLINE MODULE YOU ARE NOW AN ACCA MEMBER CAN PICK UP ADDITIONAL DEGREES: BSc – Oxford Brookes University MSc – University of London International Programme – Academic Direction by University College London
CPA USA QUALIFICATION AT A GLANCE PARTICULARS CREDIT HOURS REQUIRED EXPERIENCE REQUIREMENT NUMBER OF PAPERS
DETAILS 150 CREDIT HOURS (5 YEARS COLLEGE) 1 YEAR (CHECK STATE WORK RULES) 4 PAPERS (75% PASSING SCORE)
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INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
STUDY OPTIONS: CERTIFICATION PATHWAY INDIAN CA PARTICULARS B.COM IN INDIA (SIMULTANEOUSLY COMPLETE TILL CA INTER) JOIN 3 YEARS ARTICLESHIP IN AN AUDIT FIRM COMPLETE CA FINAL, OTHER FORMALITIES, APPLY FOR MEMBERSHIP
YEAR 1, 2, 3 4, 5, 6 7
UK ACCA – OPTION 1 PARTICULARS B.COM (SIMULTANEOUSLY COMPLETE ALL ACCA PAPERS FROM START) JOIN 3 YEARS WORK – PRACTICAL EXPERIENCE REQUIREMENT (PER) COMPLETE FORMALITIES, APPLY FOR MEMBERSHIP
YEAR 1, 2, 3 4, 5, 6 7
UK ACCA – OPTION 2 PARTICULARS FINISH B.COM (CHECK ACCA EXEMPTION CALCULATOR ON WEBSITE) APPLY FOR EXEMPTIONS BASED ON B.COM DEGREE (4 – 9 PAPERS) AND COMPLETE THE BALANCE PAPERS IN YEAR 4 JOIN 3 YEARS WORK – PRACTICAL EXPERIENCE REQUIREMENT (PER) COMPLETE FORMALITIES, APPLY FOR MEMBERSHIP
YEAR 1, 2, 3 4, 5 5, 6, 7 8
USA CPA – OPTION 1 PARTICULARS B.COM (3 YEARS) + M.COM (2 YEARS) IN INDIA - 150 HRS RULE AND PREPARE FOR CPA EXAMS DURING YOUR MASTERS COMPLETE CPA EXAMS IN YEAR 6 COMPLETE 1 YEAR WORK EXPERIENCE, APPLY FOR MEMBERSHIP
YEAR 1, 2, 3, 4, 5 6 7
USA CPA – OPTION 2 PARTICULARS BS.ACC (4 YEARS) + MS.ACC (1 YEAR) IN USA - 150 HRS RULE AND PREPARE FOR CPA EXAMS DURING YOUR MASTERS COMPLETE CPA EXAMS IN YEAR 6 COMPLETE 1 YEAR WORK EXPERIENCE, APPLY FOR MEMBERSHIP
YEAR 1, 2, 3, 4, 5 6 7
NOTE: ABOVE TIMELINES ARE EXAMPLES. PLS DO YOUR RESEARCH ON THE CERTIFICATION WEBSITE. Page 5 of 12
INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
APPLYING FOR A JOB AT BIG4 • • • • • • •
GET YOUR EDUCATIONAL DEGREE AND CERTIFICATIONS READY MAKE AN APPEALING RESUME FOR EACH JOB APPLICATION MAKE A FORMAL EMAIL ID FOR JOB APPLICATIONS! NETWORK WITH PEOPLE EMPLOYEE REFERRALS! APPLY FOR JOB OPENINGS ON THE COMPANY WEBSITE INVEST IN DECENT FORMALS (SUIT, TIE, SHOES, BAG) PREAPRE FOR THE INTERVIEW WITH MOCKS (ASK FRIENDS FOR HELP) • ART OF “SELLING” YOURSELF – ACE THE INTERVIEW!
CERTIFICATIONS REQUIRED FOR A BIG4 JOB REGULAR BACHELORS PLUS • AUDIT & ASSURANCE – AUDIT / FAAS: – FRAUD / FORENSIC / DISPUTE: • TAXATION – VARIOUS DEPARTMENTS: • ADVISORY – RISK & INTERNAL AUDIT: – INFORMATION TECHNOLOGY: – OTHER DEPARTMENTS:
CA / ACCA / CPA = any CA CFE / CAMS + any CA any CA + LOCAL TAX INFO CIA / CMA + any CA CISA / CISM / CISSP + any CA MBA MiF MiM / CFA / any CA
Note: Above combinations are not necessarily required, but would be favored
SHOULD I JOIN INDUSTRY / BIG4 AFTER CA? • AUDITORS WHO HAVE EXPERIENCE IN SMALL FIRMS DREAM TO JOIN MEDIUM FIRMS, THOSE IN MEDIUM FIRMS DREAM TO JOIN THE BIG4 • GENERALLY, AUDIT PROFESSIONALS JOIN THE BIG4 AT THE INITIAL STAGES OF THEIR CAREER • IN DEMAND, IF YOU HAVE 3-4 YEARS POST QUALIFCATION BIG4 EXPERIENCE • MOVE TO INDUSTRY AS A SPECIALIST / MANAGER WITH THE EXPERIENCE THEY HAVE GAINED AT THE BIG4 Page 6 of 12
INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
CAREER LADDER AT AN AUDIT FIRM • • • • • • • • •
PARTNER / PRINCIPAL EXECUTIVE DIRECTOR DIRECTOR SENIOR MANAGER MANAGER ASSISTANT MANAGER SENIOR / CONSULTANT STAFF / ASSOCIATE / ANALYST INTERN / GRAD CO-OP
RATINGS BASED PROMOTION EVERY 2-3 YEARS
MAJOR MARKETS AUDITOR SALARY GUIDE (PER MONTH) • • • • • •
MIDDLE EAST – INDIA – UNITED KINGDOM – AMERICA / CANADA – SINGAPORE – AUSTRALIA / NZ –
SAR INR GBP USD SGD AUD
7,000 TO 10,000 45,000 TO 60,000 2,000 TO 3,500 4,500 TO 6,000 2,500 TO 4,000 4,500 TO 6,000
(these are approximate figures for newly qualified CAs / fresher CAs, package also depends on your interview, negotiation skills & location average)
CAN NON-COMMERCE STUDENTS ALSO APPLY FOR PROFESSIONAL ACCOUNTING CERTIFICATIONS? • REMEMBER: FOR INDIAN CA, YOU WILL HAVE TO SQUEEZE TWO YEARS OF SCHOOLING FOR THE ENTRANCE EXAMINATION (ACCOUNTANCY, MATHEMATICS AND ECONOMICS) • OTHER CERTIFICATIONS: RECOMMENDED OPTION WOULD BE TO ENROLL FOR A BACHELORS IN COMMERCE / ACCOUNTING AND FINANCE AND LEARN ALL THE FUNDAMENTALS AND BASICS OF ACCOUNTING IN THE FIRST YEAR OF UNIVERSITY
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INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
FAMOUS COMMERCE PROFESSIONALS • • • • • • • • • •
K.M. BIRLA – PRANNOY ROY – DEEPAK PAREKH – DR. R. SEETHARAMAN – RAKESH RAJ – GEORGE MUTHOOT – VIJAY GOPALAN – JOHN GRISHAM – J.P. MORGAN – MICK JAGGER –
CHAIRMAN, ADITYA BIRLA (CA) CHAIRMAN, NDTV (CA) CHAIRMAN, HDFC (CA) GROUP CEO, DOHA BANK (CA) CFO, KUWAIT AIRWAYS (CA) CHAIRMAN, MUTHOOT FINANCE (CA) FORMER CFO, AIR ASIA (CA) NOVELIST (LAWYER) FOUNDER, J.P. MORGAN (Acc) SINGER, ROLLING STONES (Acc)
WEBSITES MENTIONED IN THE SEMINAR
INDIAN CA: INTERNATIONAL RECOGNITION UK ACCA: THE FUTURE (FROM SEPT 2018) UK ACCA: INTERNATIONAL RECOGNITION
www.bit.ly/2ht9SiG www.bit.ly/2iMuh33 www.bit.ly/2j2Yvmq
TEN WORST CORPORATE ACCOUNTING SCANDALS WASTE MANAGEMENT SCANDAL ENRON SCANDAL WORLDCOM SCANDAL TYCO SCANDAL HEALTHSOUTH SCANDAL FREDDIE MAC SCANDAL AMERICAN INSURANCE GROUP SCANDAL LEHMAN BROTHERS SCANDAL BERNIE MADOFF SCANDAL SATYAM SCANDAL SOURCE: www.accounting-degree.org/scandals
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1998 2001 2002 2002 2003 2003 2005 2008 2008 2009
IN REEL LIFE: > THE ACCOUNTANT: BEN AFFLECK PLAYS THE ROLE OF A FORENSIC ACCOUNTANT > THE WOLF OF WALL STREET: 1MDB SCANDAL ONGOING POLITICAL SCANDAL & HOW THE MOVIE WAS FINANCED
INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
WORK EXPERIENCE - WHY, WHERE, AND WHEN?
OUR STUDENTS LACK PRACTICAL EXPOSURE THE NEED FOR INTERNSHIPS DURING BACHELORS (VACATIONS – HOW TO UTILIZE THEM?) PRE-GRAD WORK ANYWHERE (INDIA or KSA). FORGET THE MONEY! THERE’S NO HURRY TO JOIN EMPLOYMENT! TRY TO CONVERT YOUR INTERNSHIP CONTRACT INTO A FULL TIME OFFER NETWORK NETWORK NETWORK ! … NOT SOCIAL NETWORK !
A WORD TO THE STUDENTS • • • • • • • • •
BE AWARE OF THE MARKET BE CAREFUL WHAT YOU SHARE ON SOCIAL MEDIA (FOUL, BULLY, SHAME) MAINTAIN A LINKEDIN PROFILE YOUR EMPLOYER WILL SCAN YOUR SOCIAL MEDIA ACCOUNTS ALWAYS REPLY TO MAILS / MESSAGES PROMPTLY BE AN EXTROVERT & APPRECIATE OTHERS ASK FOR HELP OR HELP OTHERS DON’T ABUSE YOUR EMPLOYER & WORKERS RESPECT YOUR PARENTS, TEACHERS, PEERS
EXAMS ARE ROUND THE CORNER! • • • • • • • • • •
SELF CONFIDENCE IS A MUST ORGANISE YOUR STUDY SPACE USE FLOW CHARTS / DIAGRAMS PRACTICE PAST EXAM PAPERS EXPLAIN YOUR ANSWERS TO OTHERS EXERCISE & TAKE REGULAR BREAKS EAT HEALTHY FOOD & DRINK WATER TAKE A SABBATICAL FROM SOCIAL MEDIA PLAN YOUR EXAM DAY (HALL TICKET, PEN, CALC) READ THE EXAM PAPER THOROUGHLY Page 9 of 12
INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
PROFESSIONAL CERTIFICATIONS – WEBSITES
CHARTERED ACCOUNTANT (CA) COST ACCOUNTANT (CWA) COMPANY SECRETARY (CS) CHARTERED CERTIFIED ACCOUNTANT (ACCA) CERTIFIED MANAGEMENT ACCOUNTANT (CGMA) CERTIFIED PUBLIC ACCOUNTANT (CPA) CERTIFIED MANAGEMENT ACCOUNTANT (CMA) CERTIFIED INTERNAL AUDITOR (CIA) CERTIFIED FRAUD EXAMINER (CFE) CERTIFIED ANTI-MONEY LAUNDERING SPECIALIST (CAMS) CERTIFIED FINANCIAL ANALYST (CFA) CERTIFIED INFORMATION SYSTEMS AUDITOR (CISA) CERTIFIED INFORMATION SECURITY MANAGER (CISM) CERTIFIED INFO. SYSTEMS SECURITY PROFESSIONAL (CISSP) CERTIFIED ETHICAL HACKER (CEH) NOTE: LOOK OUT FOR “STUDENT / MEMBERSHIP” PACKAGES
(IND) (IND) (IND) (UK) (UK) (USA) (USA) (USA) (USA) (USA) (USA) (USA) (USA) (USA) (USA)
www.icai.org www.icmai.in www.icsi.edu www.accaglobal.com www.cimaglobal.com www.aicpa.org www.imanet.org www.theiia.org www.acfe.com www.acams.org www.cfainstitute.org www.isaca.org www.isaca.org www.isc2.org www.eccouncil.org
PROFESSIONAL CERTIFICATIONS – SELF HELP
CA / CS / CWA ACCA / CIMA CPA CMA CIA CFE CISA / CISM / CISSP / CEH CFA / CAIA / FRM Quacquarelli Symonds (QS) Rankings Financial Times (FT) Rankings MBA / MiF / MiM / GMAT / GRE
www.caclubindia.com opentuition.com pqaccountant.com www.ipassthecpaexam.com www.ipassthecmaexam.com www.ipasstheciaexam.com www.fraud-magazine.com www.techexams.net analystforum.com 300hours.com www.topuniversities.com rankings.ft.com www.gmatclub.com www.pagalguy.com www.mbacrystalball.com www.poetsandquants.com Page 10 of 12
INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
THE ROAD NOT TAKEN by ROBERT FROST Two roads diverged in a yellow wood, And sorry I could not travel both And be one traveler, long I stood And looked down one as far as I could To where it bent in the undergrowth; Then took the other, as just as fair, And having perhaps the better claim, Because it was grassy and wanted wear; Though as for that the passing there Had worn them really about the same, And both that morning equally lay In leaves no step had trodden black. Oh, I kept the first for another day! Yet knowing how way leads on to way, I doubted if I should ever come back. I shall be telling this with a sigh Somewhere ages and ages hence: Two roads diverged in a wood, and I— I took the one less traveled by, And that has made all the difference.
SOURCE: en.wikipedia.org/wiki/The_Road_Not_Taken --------------------------------------------------------------------------------
IF YOU FOUND THIS HANDOUT INFORMATIVE, SEND US A FEEDBACK AT
theauditguide@gmail.com Disclaimer: The above guide was prepared based on our personal experience. We are not endorsing any of the certifications / websites / universities mentioned during the seminar or in this guide. If you feel the information provided is misleading or incorrect, or if you need further information, feel free to contact us at the above mentioned email address. Page 11 of 12
INFORMATION SEMINAR – COMMERCE STREAM
STUDENT HANDOUT – JAN 2017
“Success delayed is not success denied!” NOTES:
ALL THE BEST FOR YOUR EXAMS! “Don't let success get to your head or failure to your heart!” X----------------------------------------X Page 12 of 12