• Notification Date: 09-05-2023
  • Notification No: N/A

MCA approves New CRET Scheme proposed by ICAI

The Ministry of Corporate Affairs (MCA) has approved the new CRET Scheme proposed by ICAI, amidst fake news of the scheme being rejected and making rounds in the Social Media. MCA had asked ICAI to propose the scheme excluding the training part post membership. 

MCA’s Rationale is that post membership, COP & training is the jurisdiction of ICAI & CRET scheme deals with CA Exams structure, so including post membership training is not required in CRET. The Council at ICAI, after deliberating at length on the suggestions received from stakeholders, approved the Proposed Scheme of Education and Training with certain modifications. The Scheme so approved by the Council has been submitted to the Ministry of Corporate Affairs, along with the corresponding amendments in Regulations for final approval. 

Now, the Ministry of Corporate Affairs has given a green flag to the proposed Scheme. In 2014, the Council of ICAI has set up the present Committee for Review of Education and Training (CRET), to review the existing system of education and training including the curriculum and to examine whether or not it is adequate in the context of existing requirements and anticipated changes in the environment. 

The CRET broadly focuses on five main areas, namely, Entry Requirement, Practical Training, Course Curriculum, Examination System and Accounting Technician Course. 

The constitution of the Committee for Review of Education and Training (CRET) commenced in the year 1975 and the Review Committee for Accounting Education was set up which submitted its report in 1978. Duration of last 5 CRETs: 1975-78 1985-88 1995-98 2004-08 2013-17 Conventionally, the CRET has been constituted after a time span of approximately nine to ten years. The revised scheme of education and training is generally launched within approximately 3 years from the constitution of CRET. However, the current scheme is long overdue for the revision. Some of the expected syllabus changes include – Instead of two papers on accounting (in the current CA course) there would be a single paper “Advanced Accounting” without a reduction in the content which is covered in two papers in the present scheme vis-à-vis one paper in the proposed scheme (some portion will be moved to Foundation level). The paper on “Corporate Laws” would cover The Companies Act in its entirety, since “Business Laws” is already covered at Foundation level through a 100 mark paper. Instead of a paper on “Enterprise Information Systems” at this level, information technology education is being integrated with subjects at the Final level. Multi-disciplinary case study is being made compulsory, and the same would be integrated with strategic management. This paper is necessary to assess the student’s ability to integrate the concepts and provisions across different subject areas, analyse them and apply them in addressing issues and solving problems in a multi-disciplinary case study involving strategic decision making. The current elective papers like risk management and financial services and capital markets would be included in a self-paced online module [SET C], out of which students can opt one based on their desired area of specialisation. Minor changes to the eligibility criteria and admissions are also expected to be introduced. The following Modus Operandi was adopted by the CRET: Identification of areas to be addressed in the New Scheme of Education and Training. Requirements under International Education Standards (IESs). Study and incorporation of the significant features of National Education Policy, 2020. Best practices of scheme of education and training of International Accountancy Bodies. Analysis of probable impact of changes in curriculum on current MRA/MOU with International Accountancy Bodies. Incorporation of suggestions emerging out of discussions at high level meetings of groups of CRET.  

All the above methods implemented to meet, ensure and optimise the following –  

Requirement for change in manner of learning.  

Honing of Interpretational skills.  

Duration of the course.  

Internationalisation of the CA Course.  

Futuristic outlook in the Scheme of Education and Training.  

Higher Degree of Industry Orientation.  

Integration of Ethics.  

Intermittent Success Route.  

The following steps are to be completed now to implement the New CRET Scheme Proposed as “Proposed Scheme of education and Training” by ICAI, which might take upto 60 days: –  

Approval from Law Ministry Received by ICAI BOS Meeting Council Meeting Announcement of Date of Implementation.