CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
21 November 2012Hello friends & members
As i think its a very good platform to ask this question.????????
Pls reply what is the difference in an accountant & chartered accountant in simple & short.... whats the extra qualities a CA should have OR expected from CA.????????????
I made my opinion that a accountant know only effect on an entry, but a chartered accountant should know "effect of effect of that entry"
means " effect ki effect pata honi chahiye..........pls reply your views ..............
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 21 November 2012
"All chartered accountants are accountants but all accountants are not chartered accountants"
A chartered accountant is one who holds the certificate/membership of the institute and certified to carry out audit.Whereas accountant is capable enough to perform all functions of chartered accountant but not certified for carrying audit.
Ranganathan K
(Manager-Accounts & Audit)
(329 Points)
Replied 21 November 2012
DIFFERENCE BETWEEN AN ACCOUNTANT AND AN AUDITOR(CHARTERED ACCOUNTANT)
I. Goals:
Accountants focus on current information, dealing with day-to-day issues, closing the books and making sure tasks such as paying bills are done properly.
Auditors focus on the accounting transactions for making sure they are reasonable and correct. Auditors also pay attention to internal controls -- they may test them and make recommendation about compliance with controls.
II. Type of Work
An auditor's perspective is on past data review, may want to review the process, looking for internal controls compliance and workflows within the company that relate to paying bills.
Accountant's perspective is on present data to provide the source documentation and account transactions for auditors to work on. For instance, accountants pay bills and record them in their books with the focus on accuracy and efficiency.
III. Other Differences:
Accounting work is more sedentary, with most of the job performed in one place. The accounting area is usually more predictable, with schedules to pay bills, send out invoices, close the periods, run payroll, file taxes and release reports.
Auditing work schedule is more flexible, allowing for special projects requested by upper management. For example, an executive may request auditors to take a look at payments to a sales department because of too many errors in that area.
With best regards,
Ranganathan.K
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 21 November 2012
| Originally posted by : CA Pooja Agarwal | ||
 |
"All chartered accountants are accountants but all accountants are not chartered accountants" A chartered accountant is one who holds the certificate/membership of the institute and certified to carry out audit.Whereas accountant is capable enough to perform all functions of chartered accountant but not certified for carrying audit. |
 |
thanks pooja for reply. but m looking for very practical reply in terms of knowledge , not just bookish..i want what extra things people should expect from us for d word chartered????????????????
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 22 November 2012
1. An Accountant is required to RECORD the FINANCIAL TRANSACTIONS and FINALIZE THE BOOKS OF ACCOUNT as per the prevalent laws.
..
Although he is a REPRESENTATIVE of OWNERS to record such transactions
and REPLIES to the QUERIES raised by the CHARTERED ACCOUNTANT during the
Audit;
STILL IT IS VERY UNFORTUNATE THAT hiS SIGNATURE ON THE FINANCIAL STATEMENTS IS NOT REQUIRED/FOUND.
.
Surprising !
.
(To understand it more clearly; accountant's signature are not found on Tax Audit Reports etc., but signed by the Owners who might not knowing at all about Accounting; hence they don't know what they are signing).
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And....the owners are PRIMARILY RESPONSIBLE to maintain BOOKS OF ACCOUNT !
.
Again Surprising !
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So there is the dire need to ADDRESS this lacuna in the present system .
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[Although ATC course is introduced by ICAI (including Cost Accountanty Course), but still not found in the system].
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2. CHARTERED ACCOUNTANT is required to REPORT (i.e. to comment) on the accounts maintained by the ACCOUNTANTS that's why now-a-days; it is called FINANCIAL REPORTING.
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Ranganathan K
(Manager-Accounts & Audit)
(329 Points)
Replied 22 November 2012
Kind attention: Mr. CA Surendra Kumar
Sir,
I am now highly confused/surprised to read your following comments:
_______________________________________________________________________________
1. An Accountant is required to RECORD the FINANCIAL TRANSACTIONS and FINALIZE THE BOOKS OF ACCOUNT as per the prevalent laws. IT IS VERY UNFORTUNATE THAT HIS SIGNATURE ON THE FINANCIAL STATEMENTS IS NOT REQUIRED/FOUND. Surprising !
2. To understand it more clearly; accountant's signature are not found on Tax Audit Reports etc., but signed by the Owners who might not knowing at all about Accounting; hence they don't know what they are signing. And....the owners are PRIMARILY RESPONSIBLE to maintain BOOKS OF ACCOUNT !
Again Surprising !
______________________________________________________________________________
In that regard, I have following questions:
1. In an organisation like TATA, Reliance etc., there are 100's of employees working in their Accounts department. Do you expect all of those Accountants to sign the Financial report!!! Is it possible???
2. You are a practising CA, certifing and signing the Financial report of your clients. Please tell me the Accounts of all your Clients' are really audited directly by you!!!.. I mean vouching the bills/journals/Sales/Purchases etc., Does it not handled by your office staffs, Articled Assistants???
In that case, the Audit staffs/Assistants should sign the Accounts. Right???!!! Then what is the need of signing the documents by you(Chartered Accountant) instead of your staffs?
Conclusion:
As per my knowledge the Chartered Accountant is signing the report because, the Audit is conducted only as per the guidance given by the respective Chartered Accountant.
And the owner of the company is signing the report because, the Accounts are maintained only as per the process and systems made by the owner.
With best regards,
Ranganathan.K
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 22 November 2012
@ Shri Rangnathan,
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There is no need to confuse because the question raised was to find difference between an Accountant and a Chartered Accountant.
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It is true that there may be 100s of CAs employed in a big company but they also have a chief accountant and he may be held responsible to sign the balance sheet.
(Isn't it logical)?
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Similarly; in the case where more than one CAs conduct audit of a client; but only one is required to sign until the audit is conducted jointly by two CA Firms. It does not mean that he himself should conduct the audit. Once he is satisfied with the work performed by his team on the basis of audit working papers and discussions with the clients; he relies thereon and certifies the books.
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It is my view that an Accountant should sign Statement of Affairs. This view is also supported by the introduction of ATC (Accounting Technicains) by both the Institutes as explained above. (Already written in the previous post).
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Please refer the issue raised in the forum :
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Hello friends & members
As i think its a very good platform to ask this question.????????
Pls reply what is the difference in an accountant & chartered accountant in simple & short.... whats the extra qualities a CA should have OR expected from CA.????????????
I made my opinion that a accountant know only effect on an entry, but a chartered accountant should know "effect of effect of that entry"
means " effect ki effect pata honi chahiye..........pls reply your views
.
Accordingly, I focused on the issue raised to clear in simplest manner what is the difference between both of them.
.
I have shared my views on the above as special request by the author was made to me.
.
(Others need not agree).
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Ranganathan K
(Manager-Accounts & Audit)
(329 Points)
Replied 22 November 2012
Sir,
Thanks for your kind clarification.
Further, as mentioned by you, this forum is to discuss about the roles & responsibilities of "Accountant and Chartered Accountant"
So, I think if we could get those details from the experts would be more helpful.
At the same time, I believe the issue raised by you, should be discussed in a separate forum.
Thanks and regards,
Ranganathan.K
CAclubindia
