Annexure 3: Nature of Activities of Chartered Accountants

Accountancy This include the writing up of accounts and the preparation of financial statements from the simplest receipts and payments accounts.

Auditing: This is one of the most important functions of a chartered accountant where his specialized training, skill and judgement are most often called in play.

Taxation: preparing tax returns of their client assesses, representing them before the income-tax authorities and rendering general advice on taxes. Their services are now required by the tax department for auditing complicated cases, having large revenue potential. The requirement under the income-tax law for compulsory maintenance of accounts by the specified categories of taxpayers would also make a demand on their services. Assesses with a minimum turnover of Rs.10 lakh in the case of professionals and Rs.40 lakh in the case of business concerns are compulsorily required to get their accounts audited under the Income-tax law.

Cost Accountancy: Maintaining costing records and ascertaining the costs of production and of processes at different levels of operations in the manufacture of a product, providing costing information for the guidance of management, introducing cost control methods and assisting the management in establishing appropriate selling prices.

Special Company Work: Advising on matters such as the formation, financial structure and liquidation of limited companies.

Investigation: Ascertaining the financial position of companies, in connection with such matters as new issues of share capitals, the purchase or sale or financing of a business, reconstruction and amalgamations.

Executors and Trustees: Acting as an executor under a will or trust in order to carry on the administration of the estate or settlements.

Directorship: Holding senior positions in industry and commerce (also as directors of their companies). Many members who are actively carrying on public practice are also directors of companies.

Management Accounting: Formulating policies, undertaking control, performance evaluation, etc.

Share Valuation Work: Undertaking valuation of shares of public and private companies when amalgamation or re-organisation takes place for the purpose of takeover bids and other acquisitions.