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Chartered accountants 1961


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Chartered accountants 1961 of Pakistan.

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Chartered accountants 1961

  1. 1. CHARATERED ACCOUNTANTS ORDINANCE, 1961 & ICAP Preparedby: Hina Shaheen Faizan AKhtar
  2. 2. INTRODUCTION Institute of Chartered Accountants of Pakistan (ICAP) is a professional Accountancy body in Pakistan. As of July 2010, it had 7,200 members working in and outside Pakistan. The institute was established on July 1, 1961 to regulate the profession of accountancy in Pakistan. It is a statutory autonomous body established under the Chartered Accountants Ordinance 1961. The head office of the institute is in Clifton, Karachi. Where it has its own premises. The Institute has regional offices in different cities. Lahore Islamabad Peshawar Multan Faisalabad
  3. 3. Vision Mission The profession of Chartered Accountants in Pakistan should be the benchmark of professional excellence upholding the principles of integrity, transparency and accountability. Achieve excellence in professional competence, add value to businesses and economy, safeguard public interest ensure ethical practices and good corporate governance while recognizing the needs of globalization.
  4. 4. Management of Institute  Secretariat  Examinations  Education & Training  Quality Assurance Department  Technical Services  Finance  Information Technology  Internal Audit  Marketing  Human Resource & Administration Management and day to day running of the Institute is the responsibility of the Secretary who is appointed by the Council of the Institute. The following departments assist the Secretary to accomplish the above Functions:
  5. 5. This scheme caters to the students who want to join the profession after completing their 12 year education, namely, Higher School Certificate, A Level and other equivalent qualifications. Higher Secondary School Certificate with minimum 50% marks. ‘A’ Levels with minimum two passes, or equivalent qualification. Graduates with minimum 45% marks. Requirement for CA
  6. 6. 1. CA is depends upon 6 Modules and 20 papers. 2. Each module depends upon 6th Months 3. But The last two modules E & F constitute CA FINAL. The total duration of CA Final can be 3 or 3.5 years. Road Map for CA
  7. 7. Career in chartered accountancy is one of the highest paid professions in the country. a) Field: Chartered Accountancy b) Expected salary at entry: 60,000 - 70,000* c) After five Years: 100,000 - 180,000* Chartered Accountant Salary in Pakistan
  8. 8. Chartered accountants offer financial advice, audit accounts and provide trustworthy information about financial records. This might involve financial reporting, taxation, auditing, forensic accounting, corporate finance, business recovery and insolvency, or accounting systems and processes.  Continuous management of financial systems and budgets.  Providing financial advice.  Maintaining accounting records and preparing accounts and management information for small businesses.  Detecting and preventing fraud (forensic accounting).  Advising on tax and treasury issues.  Preparing financial statements, including monthly and annual accounts.  Arranging financial management reports, including financial planning and forecasting. Job description
  10. 10.  Associate: means an associate member of the Institute.  Chartered accountant: mean a person who is a member of the Institute.  Council: means the Council of the Institute  Fellow: means a fellow member of the Institute  Institute: means the Institute of Chartered Accountants of Pakistan constituted under this Ordinance. Definitions
  11. 11. Definitions  Register: means the Register of the Members of the Institute maintained under this Ordinance.  Year: means the period commencing on the first day of July of any year and ending on the thirtieth day of June of the succeeding year.  Student: means a person who is or has been trainee under a training contract with a member of the Institute.
  12. 12. CHAPTER-2 The Institute of Chartered Accountants of Pakistan
  13. 13. Associates and Follows How will become Associate. How will become Follows.  If his Name enter in register.  After becoming member use the letter of ACA.  An Associate member has 5 year practices.  Associate member of institute has period not less than ten year.  Payment of Prescribed fee.  After becoming Follows use the letter FCA. The members of the institute shall be of two class designated respectively as associate and Fellows.
  14. 14. Certificate of Practices Certificate is must be necessary for Practices  No member can practice as an auditor of public company if he has obtained from the council a certificate of practice.  Every such member shall pay such annual fee for this certificate as may be prescribed and such fee shall be due on the first day of July in each year.
  15. 15. Disabilities: A Person shall not be entitled to have his name entered in or borne on the register if he is.  Less than 20 year old  Unsound mind  Insolvent  Misconduct
  16. 16. CHAPTER-3 Council of the Institute
  17. 17. Council of the Institute Function of the council  Maintenance of the status and standard of professional qualifications of the members of the Institute.  The levy and collection of fees from members.  Remove the name of members.  The maintenance of a library and publication of books and periodicals relating to accountancy. There shall be a Council of the Institute for the management of the affairs of the Institute.
  18. 18. Council of the Institute Function of the council  The exercise of such disciplinary power over the members and servants of the Institute as may be prescribed.  Prescribing of qualifications for entry in the Register.  Regulation of the engagement and training of students.  Examination of candidates for enrolment and the prescribing of fees. There shall be a Council of the Institute for the management of the affairs of the Institute.
  19. 19. Council of the Institute Function of the council  The granting or refusal of certificates of practice under this Ordinance.  The maintenance and publication of a register of persons qualified to practice as chartered accountants.  Recognition of the foreign qualifications and training for purposes of enrolment.  Finance of institution There shall be a Council of the Institute for the management of the affairs of the Institute.
  20. 20. Council of the Institute Function of the council  Appoint a full-time Secretary  Appoint such other officers and servants.  fix salaries, fees, allowances and other conditions of service of the officers and servants of the Council.  Fix the allowances of the President, Vice-President or Vice-Presidents and other members of the Council and members of its Committees. There shall be a Council of the Institute for the management of the affairs of the Institute.
  21. 21. Council of the Institute Duration and dissolution of Council  The duration of the Council constituted under this ordinance shall be four years.  Duration of council is start from 1st meeting.  Provided that the duration of the Council existing immediately before the commencement of the Chartered Accountants (Amendment) Ordinance, 1983, shall be three years.  The expiry of the duration of the Council it shall continue to function until a new Council is constituted in accordance with the provisions of this Ordinance. There shall be a Council of the Institute for the management of the affairs of the Institute.
  22. 22. CHAPTER-4 Register of Members
  23. 23. Registration Process of Members The Council shall maintain in the prescribed manner a register of the members of the institute.  Full name  Date of Birth  Domicile  Residential and Professional address  Member Entry Date  Member Qualification  Certificate of Practice  Any other Requirement  Pay Annual Membership Fee
  24. 24. Disappointment of Members The council , may remove from the register the name of an member of the institute.  Who is dead.  If any request has been received.  If he not paid any prescribed fee.  Any Disabilities mention in Section-8
  25. 25. CHAPTER-5 Appeal and Revision
  26. 26. Appeal and Revision Any member of the Institute aggrieved by an order of the council imposing on him any of the penalties referred to in section 20D may, within sixty days of the date of communication of such order to him, prefer an appeal to the High Court.  High court may, on its own motion or on an application made to it.  High Court Call for the record.  confirm, modify or set aside the order.  Impose any penalty or set ‘aside, reduce, confirm or enhance.  Remit the case to the Council for such further inquiry.  Pass such other order as it may deem fit.
  28. 28. Penalties are impose in different case under as following.  Any person who not being a member of the Institute.  If any person represents that he is a member of the Institute.  If any person uses the designation Chartered Accountant.  Being a member of the Institute, but not having a certificate of Practice represent as Chartered Accountant.  Unqualified person not to sign documents. PENALTIES:
  29. 29. Fine and Punishment: First Conviction: 1 thousand rupee fine. Second Conviction: 6th month Imprisonment and 5 thousand rupee fine. PENALTIES:
  31. 31. Amendments in chartered accountants ordinance, 1961  Professional Standards compliance more effective by empowering the Council.  The Institute to call for information and records in cases of Quality Assurance work.  Improvement in Governance of the Institute .  Some aspects of the profession with International Best Practices.  Redundancies and changes in ancillary matters. AMENDMENTS-2011
  32. 32. Amendments in chartered accountants ordinance, 1961  Empower the council to make final decision instead of referring matters to the High Court.  Bring changes in composition of the Council.  Allow members of ICAP to charge contingent fee.  Enhance penalties for professional misconduct infringements.  Allow advertising and soliciting of work within bounds. AMENDMENTS-2011