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Adding the initials “CA” to your name is a difficult task in India because being a chartered accountant is one of the most prestigious jobs in the country. There are numerous opportunities available to a candidate who has completed all of the required papers and is a qualified CA.
Moreover, it is very common for expert and qualified CAs to be curious about the world of accounting. They frequently wish to practice in foreign countries, and the United Kingdom is one of their favorites.
In this article, we will learn about one such opportunity: practicing chartered accountancy in the United Kingdom. Yes, a qualified Indian CA can work in the United Kingdom.
So, how can that happen? For this, we must consult the official agreement between India's and England's accounting bodies.
ICAI, India's supreme accounting body, is well known to almost every reader. The ICAEW is its British equivalent.
Also read, how an Indian CA can pursue CPA Canada.
The MOU between the ICAI and ICAEW
The Institute of Chartered Accountants of India (ICAI) and the Institute of Chartered Accountants in England and Wales (ICAEW) have signed a memorandum of understanding (MoU) to strengthen their working relationships. This Memorandum of Understanding was signed in 2008.
On October 2, 2019, the Institute of Chartered Accountants of India renewed its Memorandum of Understanding (MOU) with the Institute of Chartered Accountants in England and Wales to recognize each other's qualifications and training, and admit members in good standing through a bridging mechanism.
The renewal of this MOU demonstrates ICAI and ICAEW's strengthened ties and continued commitment to work even more closely together to build a world with strong economies and the best professional skills.
There are different eligibility criteria for ICAI members to become members of ICAEW and there are certain criteria for the members of ICAEW to become members of ICAI.
In the scope of this article, we are concerned about how Indian CAs can practice in England, so let us concentrate on the first criteria.
How Indian CAs can practice in England
The Institute of Chartered Accountants of India (ICAI) and the Institute of Chartered Accountants of England and Wales (ICAEW) have signed an agreement that allows both countries to recognize the qualifications of CAs from other countries. CAs from India will be able to practice in the UK, and British CAs will be able to set up shop in India.
According to the agreement, existing ICAI members with two years of post-qualification experience will be eligible for ICAEW membership after passing the ICWAEs. Members of the ICAI with less than two years of experience must pass three exams, which are given below.
Technical integration, Business Change, Business Reporting, etc.
They will not, however, be permitted to audit the accounts of host-country companies. It would be permitted after the Financial Reporting Council (FRC) of the United Kingdom (UK) approved the matter. Yes, Indian CA has some limitations, but these can be overcome over time. The limitations are summarized below.
The limitations
- Statutory audit rights in the United Kingdom are not covered by the MoU and will not be conferred on ICAI members who join ICAEW under the terms of the MoU. The UK Financial Reporting Council controls statutory audit rights in the United Kingdom, which are conditional on achieving the 'audit qualification' under the Companies Act of 2006.
- An ICAI member who joins ICAEW and wishes to obtain UK audit rights would be required to undergo re-qualification to obtain a UK audit qualification.
This would entail three years of supervised work experience with an ICAEW-approved training employer, completion of specified minimums of approved audit work, and passing a minimum of the ICAEW's Advanced Level examinations as well as the Principles of Tax and Law examinations from the ICAEW's Certificate Level examinations.
- Once approved by the FRC's professional oversight board, the UK's independent regulator for corporate reporting and governance, Indian CAs will be able to audit the accounts of corporate entities in the UK on par with their UK counterparts.
In short, if an ICAI member joins the ICAEW, they will be eligible for an ICAEW practicing certificate on the same basis as ICAEW members if they have two or more years of membership with their homebody, relevant work experience, and are in good standing, and according to the ICAI eligibility criteria. Ethical, CPD, and PII guidelines are all followed.
This is a huge relief because working as a CA in the UK is like pulling a sword from a stone. You must pass 15 exam modules covering various aspects of accounting, finance, and business in order to become an ICAEW Chartered Accountant.
Things are very smooth for you simply because you are a qualified CA in India, and as previously stated, if you have worked for two years, passing the two exams will not be difficult for you, though you will need to read and work a little harder.
Each of the ACA qualification modules is designed to provide you with in-depth knowledge across a wide range of topics and is directly relevant to the work that you will do throughout your training. topics.
Despite the fact that the modules are divided into three levels: certificate, professional, and advanced, they can be completed in any order, with the exception of the case study, which must be completed at the very last.
The roles and responsibilities of a chartered accountant in England
The role and responsibilities may differ depending on the industry in which one works. Nonetheless, chartered accountants must generally perform the following duties:
- Conducting financial audits
- Collaboration with clients, individuals, and businesses
- Risk assessment.
- Accounting records must be kept, and billing information must be prepared.
- Collaboration with internal and external auditors.
- Following the audits, recommendations and reports are prepared.
- advising clients on areas for financial growth.
- Advice on tax planning.
- Financial guidance.
- Annual, monthly, and financial statements are prepared.
- Budget administration.
- Contract negotiations with suppliers
To summarize the article, Indian CAs are highly valued overseas, and there are good opportunities to practice in England as well. In England, the ICAEW module includes 15 different papers, but this number has been reduced to 1 case study paper only if a qualified CA has two years of experience. They reduced it to just three different papers for those who have qualified as CAs.
However, they will have to wait a little longer for a statuary audit because the right to a statuary audit is not part of the MOU and falls under the FRA, or financial reporting council.
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